Dec
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Warren Buffett
Posted by: Janna Chi | December 2, 2010 | Leave a Comment
When we talk about finance, the first person comes to my mind is Warren Buffett, a 77 old man who once passed Bill Gates and became the richest person in the world. In the class, We learned the basic about finance which is risk allocation, how stock prices are determined, how finance affect a company’s opperation. Buffett’s main business is investment in the stock market. He is an expert in risk assessment. He always has special insight to uncover the undervalue companies. After the financial crisis in 2008, many billionaires lost their fortune when their company’s stock lose their value. Yet, at the same time, Buffett’s company raise 20% in stock market. In the financial crisis, many companies went into bankruptcy or other financial troubles because of poor risk management. Sometime, even if the company has a correct market stragtegy, good products or a good leadership, the business can still fail because their financing and credit management are not appropriate. In this area, Buffett is unsurpassed. But sometimes people think that he is too conservative. The financial crisis proven that sometimes conservative is a good thing and they should show restraint in how fast a company expands and how aggressive they use in financing.