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Reading Financial Statements for Berkshire

Looking for some general guidelines or direction as to how to determine the following:

With regards to Berkshire Hathaway, Inc.(www.berkshirehathaway.com), to identify the firm's most recent long-term financing decision (e.g., debt, IPO, seasoned equity offering, secondary offering) and analyze the economic, business, and competitive background in which the financing occurred, and identify cost and risk trade-offs.

Ultimately this assistance will help me in devising a 250 to 350 word essay (approx.)

Solution Preview

Comment to student: The information which I am presenting reflects the recent issues of notes by Berkshire, as appearing in the latest 10Q statement available:

source:
http://yahoo.brand.edgar-online.com/doctrans/finSys_main.asp?formfilename=0000950129-05-010572&nad=

I am cutting and pasting relevant information from this document for your essay:

Details of issue:

During the first nine months of 2005, Berkshire Hathaway Finance Corporation ("BHFC") issued a total of $5.25 billion par amount of medium term notes. On January 4, 2005, Berkshire Hathaway Finance Corporation issued $3.75 billion aggregate par amount of medium term notes. The proceeds from the notes were used to finance a loan portfolio acquisition by Clayton Homes that occurred on December 30, 2004. On May 11, 2005, Berkshire Hathaway Finance Corporation issued $1.5 billion aggregate par amount of medium term notes. The proceeds were ...

Solution Summary

The information which I am presenting reflects the recent issues of notes by Berkshire, as appearing in the latest 10Q statement available.

$2.19