1 Comment

Hi Adam,

1 Would you be able to do a case study of Buffett’s capital intensive purchase of BNSF?

2 Like SFX.ax which is a mineral sand company, most importantly is the Volume Risk, if no binding contract being signed to buy the volume produced, no equity investor would be interested.

3 FlightSafety, pretax earnings is 111 million and working capital is 202 million in 1995?

1995 next investment in fixed assets 570 million, Equipment at cost 894 million.

In 2007, when Buffett do the calculation of increments return, he first reached a figure current fixed assets after depreciation 1079 million, which I believe he use 273 simulator each cost 12 million as 3276 million equipment at cost in 2007 deduct the accumulated depreciation which is 384+923=1307 million and then deducted the 1995 equipment at cost 894 million to arrive at 1079 million current fixed assets after depreciation, basically asset based for capital intensive company?

Expand full comment