For the reason that it is very cheap in comparison.
with the existing assets of Mr. Buffett He
bought more and more shares until he became the owner.
of full power and was able to determine the direction of the company
three years later and turn the ship on its head.
Focus on holding shares in other companies instead.
That is, Mr. Buffett views that the industrial pipe industry It
was declining. In 1967, I bought it. An
insurance company called National
Indemnity Company, after that
Has bought shares of an insurance company called
Gaiko, who was experiencing financial problems, finally
Yes, he became the owner of this company.
Completely, which must be said that the business
Insurance is Mr. Buffett's business.
I already liked it and this became the point.
Important change for Chai H Company as well
because in the insurance business there is one thing
called Flat or insurance premiums from customers.
Trade that has not yet had a claim.
Get this money from customers every year by money.
This part is what can be used for further investment. You can
get the amount without having to pay it back immediately.
Continuing on with this, Mr. Buffett will lead The
money goes to holding shares in other companies that are not interesting.
that it will be a partial shareholding, a partnership
Big or sometimes it will be the nature of
Purchasing shares until they become owners by
Complete, for example, BNSF, the
largest rail freight company in the
United States, Dary Queen, the owner of soft serve ice cream.
Famous for the original weaving business that you
Buffett keeps borrowing to hurt workers.
Ultimately, we had to decide to
close down in
1985, even though this business had been operating for 146 years.
However, by purchasing a business,
That much will inevitably cause problems.
management, whether it is a matter of style
work, organizational culture, or even values that They are
different, especially in businesses that are in different people.
industry, what do you do with Buffet
so that there are no problems in management in the first place?
Therefore, it means being a good business owner from
First, according to Mr. Buffett's principles for investing.
That is to choose a great company.
Yes, there is a high fortress that will protect you. Make it
easy for competitors to compete, for
example BNSF, the rail freight business.
which is considered a business that has gone down in the sun It's
up to Mr. Buffett to invest as much as 1.7
trillion baht to own this business.
Completely, even though many people think that Mr. Buffett
This is crazy, but his eyes are still there.
Always sharp because of him. The
rail transportation business can still be around for a long time.
The
important thing is that there are high economies of scale.
Yes, simply put, the more transportation there is,
How much is the fixed cost of infrastructure? That
which was originally there was only greatly reduced.
Importantly, this business is a competitor that wants to
Entering the competition is difficult because there is competition. The
capital is very high as well, another example.
That is a shareholding in the soft drink business
such as Coca, which has been held since 1988.
We consider it a strong brand and
There is a distribution network covering all over the world.
Yes, and how much capital does the competitor have?
By making black water to compete, it can compete with coca.
Cola is difficult, sure enough, besides the business itself
And Mr. Buffett also gives importance to people.
Management including the identity of the original owner who must have
Honesty, transparency and good governance
To ensure that there will not be any problems.
following or having hidden problems, it will cause
Investing is smooth, less headache and peace of mind.
More but if any company that he has ever looked at It's
good, but comes back and has problems later. For example, in
the case of Wells Bank,
Chaow invested in
1989 with a value of more than 43,000 million baht, but
in 2016, this bank was fined from If the
transaction is illegal, Mr. Buffett will cancel it.
Decided to welcome investment from Welskago Bank both
immediately, the next principle is to believe and
Give freedom to executives among the companies that
Mr. Buffett decided to become the owner.
Business is complete, he still gives rights.
For the owner or the original management
Able to manage work within the company independently.
Because he sees that people who know and make decisions in The
best business is the one who
involved with or created that business by
Mr. Buffett, I will not interfere in any way.
about the company except there is something that It is
really necessary, for example, deciding to
invest in nfm, a decorative retail business.
Homes in North America for the reason that you
Buffett invested in this company because he liked it.
Praise the hard work of the executives and also
Giving additional reasons that the executives of
nfm still have a passion for doing business even though
Even if the proportion of ownership has been lost
Doing this is other than Mr. Buffett.
Will gain the trust of the executives.
of the original company, doing this would still cause
To create flexibility in management and
Able to create new innovations fully
And the last principle of the parent company.
Take care of only the important matters. The
main duty of Chaiyaw is organizing
Allocate funds to take care of legal and governance matters.
At present, Chaiyao has designated companies in The
group only sends financial statements and free cash flow.
obtained from monthly operations for
Only the parent company makes Chaoyai. I understand.
Just the operating results of the affiliated companies that were born
Including free cash flow that can be used to You can
use whatever you want, no matter how much is left.
Before deciding whether the excess cash
These can be used to manage
How do you get the most benefit from the direction section?
Strategy including management is given to you.
It becomes the duty of executives in internal companies.
In the network, we can do it as fully as possible.
This allows Mr. Buffett to focus on
Investing and having time to find and analyze companies
Others have the potential to invest further.
Sure enough, when we got here we could see
that waren Buffet, in addition to being a professional
He is also a highly skilled investor.
Run a company with the same ability as
other CEOs who combine investment skills.
and his management together
Let the Bekchaihwa Kingdom grow steadily.
Since then, it is not surprising that
today, Berk chy hw has become a trading company.
Capital listed trillion dollar
companies and became the 8th largest company
in
the world.
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