This year Warren Buffett is getting ready to celebrate fifty years of business with Berkshire Hathaway (BRK / A), however, the financial conglomerate is under fire from the market due to lack of transparency.
But Wall Street is against Warren Buffett?
Essentially the leading analysts of international investment banks denounce lack of transparency in the latest quarterly published by Berkshire. Analysts complain that a $ 370 billion dollars which ranks third in terms of capitalization in the US financial market provides very few details on the underlying business compared with the information provided by similar companies.
The financial conglomerate Berkshire is characterized by a variety of sectors, from utilities, to ferrorie, the manufacturing sector but also retail, newspapers, media and the main business of Buffett, insurance.
Especially financial analysts, complaining that the most important sectors of Berkshire as the insurance does not provide a set of information to allow investment banks to “advise” the possible purchase or sale of the security.
Warren Buffett on the other hand defends itself by saying that all the information necessary to make an investment in the long term are provided. Also not recommended to potential investors to buy the shares of Berkshire on the recommendations of investment banks or predictions for this or the next half-year.
Warren Buffett prefers for his company only long-term investors, who are aware of the investment going to do, especially after a careful reading of the report and its annual letters to shareholders of Berkshire. The company of Warren Buffett does not have a department dedicated to relations with investors, its team of 24 people manages all the group’s subsidiaries and not, with a cumulative return of 693 518% from 1965 (you’ve read that right are thousands).
Warren Buffett has never been loved by Wall Street because they are also some of his famous quotes very “unpolitically correct” like this:
“Wall Street is the only place where people arrive in Rolls Royce for advice to those traveling by subway”