1st Warren Buffet and 2nd Hershey Foods Case Study

1st Warren buffet and 2nd Hershey Foods - Case Study ExampleValue investors homogeneous Buffet target such companies because they have been under nurtured in the market. This causes unusual shift of stock investment in the club. When this happens, the values of such companies are deflated and that is when a value investor strikes.The intrinsic value is a companys stocks, assets and product value. This value may or may not be the same as the current market value. Intrinsic value is different from stock price in the sense that stock price is not used to determine the intrinsic value of a company. A companys stock price in the stock market might be high or minuscule when analyzed based on intrinsic value.Despite the benefits of acquiring undervalued companies, Value investors, so much consumed in finding value in the stock market generally fail to notice some tolerant risks that misguide in making judgments. Such risks entangle value traps where stocks of a company continue to fa ll. The some other risk is the fact that the returns may be lower that the investment growth. Apart from that, determining the intrinsic value is subjective and varies. This is due to the fact that there are no standard criteria to determine it. Decision great deal be made based on findings from one analyst and this might turn out to be wrong.Through his multinational holding company Berkshire Hathaway, Buffet has invested in major corporations all over the world. These include GEICO insurance, National Indemnity union, Justin Brands, Nebraska Furniture Mart , American Express, The Coca Cola Company, Wells Fargo and Company among others.American Express is one of Americas leading credit card service providers. Buffet owns 14.8% of this finance corporation. Over the past months, the company lost partnership with Costco wholesale that opted to start working with Visa. The exhalation at Costco is more substantial, but the partnership contract is valid till early 2016. Berkshire has increased its blondness share