Case Study –Warren E. Buffett, 2005: Acquisition of PacifiCorp

1. What do you know about Berkshire Hathaway based on this case? Please list five facts about the firms.

2. What are elements of Buffett’s investment philosophy? Please critically assess those elements which Buffett disagrees with modern finance?

3. In your opinion, what is the motivation for the acquisition of PacifiCorp?

4. Based on you analysis, do you think Buffett is overpaying based on the multiples for comparable regulated utilities?

5. What does the stock market seem to be saying about the acquisition of PacifiCorp by Berkshire Hathaway?

6. Is the PacifiCorp acquisition a good deal for Buffett? Why?