Warren Buffet Research Articles

Buy Side Challenges for Centralized Clearing of CDS Contracts

OTC derivatives were termed by Warren Buffet as Weapons of Mass destruction, which was earlier much criticized by the financial community. However, these derivatives are now being blamed for the disaster in the financial markets, the bankruptcy of Lehman brothers and the crisis at American International Group. Given the bilateral nature and non standardization of collateral management, OTC derivatives have significant credit risk that may result in the bankruptcy of participating firms. To protect the interest of the OTC derivatives participants, regulatory bodies have given a mandate for the centralized clearing of the CDS contracts.This paper discusses the implications of centralized clearing of CDS contracts for buy side participants and the challenges it poses for them. We specifically discuss the default protection measures taken by CCPs and the ambiguity surrounding the regulatory changes required to implement those measures. The paper details how buy side firms are protected by the margin and collateral management process in the central clearing environment. Additionally, we highlight the changes buy side firms will need to implement in their technology and operations under the new clearing framework.

What if History repeats, Warren Buffet to Become the Chairman of Goldman Sachs?

In 1987, Wall Street investment banks were going around trying to raise capital to shore up their balance sheets that were damaged from investments in junk bonds. In such background, Warren Buffet came to the rescue of Salomon Brothers, with his investment of US$ 700 million in Convertible Preferred stock of Salomon. When the legal irregularity hit Salomon and brought the company to the brink of bankruptcy, Warren Buffet has become the Chairman and CEO of Salomon on fire-fighting basis.After almost 7 years of exiting Salomon Brothers, Warren Buffet has again invested in a Wall Street bank in 2008. That is, in Goldman Sachs amidst of awful economic conditions panned out post-Lehman bankruptcy.Not sure, whether the history is repeating itself, but even Goldman Sachs is sued by SEC for a fraud on 16th April, 2010. The magnitude of problem is intensifying with, even the regulators from London and Germany have also started probe into Goldman Sachs.As this scenario unfolds, one can’t resist from the view that if history repeats itself, whether we are just about to witness: Warren Buffet to head Goldman Sachs?

Assessing the risk of M&A: Bruner's Disaster Framework applied to Berkshire Hathaway's Gen Re Acquisition

PurposeThis paper aims to acquaint managers with a little known mergers and acquisitions (M&A) diagnostic tool that made its debut in the book Deals from Hell – M&A Lessons that Rise Above the Ashes (NY: Wiley, 2005) by Robert Bruner.Design/methodology/approachThis paper offers a retrospective case study using Bruner's risk assessment framework to examine Berkshire Hathaway's 1998 Gen Re acquisition by CEO Warren Buffet, which proved to be a problematic deal. The case study makes use of recent post‐deal reports.FindingsThe case study supports the findings of Bruner's research regarding the utility of the M&A risk assessment framework presented in his book.Research limitations/implicationsTthe field of real disasters could be the subject to further strategy‐based research.Practical implicationsBruner's disaster‐based M&A risk assessment framework could be practically utilized in M&A.Originality/valueThis paper is practically‐oriented commentary on recently published M&A risk assessment research, which is analyzed via case study.

BioBoard

Australia to Lead a Global Project to Document Human Variation and Transformation Genetic Health. EvoGenix Nets $1.66 m Grant for Cancer Work. First Live Porcine Vaccine in Australia. PharmAust Collaborates with Bristol Pharma Australia. Agricultural Biotechnology International Conference in Melbourne. Stanford Signs Pact to Provide Online Health Information to China. Lonza Increases Stakes in China. China Invests in International Traditional Chinese Medicine Programs. China's Science Ministry Reforms to Prevent Misconduct. China Harnesses Brain Power for Life Science Industry. Chinese Society of Biotechnology Holds Annual Conference. TWAS Prizes in Biology — China and Brazil. China to Reform Biotech Policies. Bird Flu News in Indonesia. Hong Kong University Vice—Chancellor Lap-Chee Tsui Appointed as an Honor Professor of Zhejiang University. Australia and Korea Fishing for Synergies. Top Indian Health Institute Sacks its Director. LabVantage India Eyeing the Domestic Pharma & Healthcare Market. India's Panacea Biotec Signs Deal with Indonesian PT Bio Pharma. International Congress Held in India. Kyowa Hakko Kogyo to Expand its Fuji Plant and Accelerate R&D for Antibody Drugs. Crucell Licenses Cell Line Technology to Japanese Firm. Malaysia's Biotechnology Asia 2006 will Gather Global Industry Players, Researchers and Entrepreneurs. New Zealand Launch Technology Partnership Programs. CombinatoRx Receives Infectious Disease Research Grant from Singapore's EDB. Singapore's RIEC Allocates $1.4 billion for Three Research Programs. ITRI and UK's Sanger Institute Sign Research Collaboration MOU. Warren Buffet Pledges Most of his Fortune to Gates Foundation.

Comments on Richard Zeckhauser's Investing in the Unknown and Unknowable

Comments on Richard Zeckhauser's Investing in the Unknown and Unknowable

Lagged factors affecting Berkshire Hathaway returns

Berkshire Hathaway is regarded as the mover of markets and one of the biggest funds in the world, and is managed by Warren Buffett. By means of a linear factor model, macroeconomic variables and market factors are regressed on the monthly performance of Berkshire Hathaway. The goal is to see whether Warren Buffet is really a value investor. A new set of factors are identified in an attempt to predict Berkshire Hathaway returns.

The Need For Evidence-Based Health Policy To Address Health Care Variations

Medicare policy making now deals mostly with price-setting issues. However, as Warren Buffet has noted: “Price is what you pay. Value is what you get.” Victor Fuchs's studies raise fundamental issues for a value-oriented Medicare program. Florida offers one of many regional patterns of Medicare mortality that are not yet adequately explained. Valued-oriented, evidence-based Medicare policies would target opportunities to improve population health and would foster greater use of evidence-based medicine.

The Warren Buffet CEO

The Warren Buffet CEO

Ethics and Leadership on Wall Street

.. \ightmare on Wall Street: Salomon Brothers and the Corruption of the 1 Marketplace is the second popular book on Salomon Brothers to appear in the last decade. The first, of course, was Michael Lewis' best seller Liar's Poker. In that book Lewis provided an engaging description of the raucous atmosphere to be found in the bond trading room at Salomon. He described how Salomon's traders read tracts on the nature of warfare as they skillfully practiced their craft in the of the world's volatile bond markets. According to Lewis, many of these aggressive and highly compensated bond traders tended to treat each day of trading as if it were their last, and this short term orientation allowed them to exploit the weaknesses of their customers without concern for long-term adverse effects on customer relations. The hapless trainee who was new to the jungle didn't worry much about ethics- he was just trying to stay alive. This lack of concern for ethics was sure to one day provoke a crisis and this happened with full force in the summer of 1991. On August 9th of that summer Salomon reluctantly and shamefully admitted that it had committed irregulari- ties and rule violations during its participation in several recent treasury secu- rities auctions. In the aftermath of this infamous scandal John Gutfreund and other key executives of the company were forced to resign. And if it weren't for the leadership and integrity of his replacement, Warren Buffet, Salomon Broth- ers might have been forced to close its doors after 81 years in the investment banking business. Like its predecessor, Liar's Poker, Nightmare on Wall Street is an accurate depiction of the now infamous Wall Street scene in the 1980's. However, Mayer's book is a much more somber treatment of the Salomon Brothers' mys- tique. It begins with a description of Salomon's proud history from its humble beginnings as a brokerage house to its emergence as one of the most powerful