Carefully go through each item (#1-6) & explain whether PCP meets the criterion mentioned.
We are eager to hear from principals or their representatives about businesses that meet all of the following criteria: 1. Large purchases (at least $75 million of protax eamings unless the business will fit into one of our existing units) 2. Consistent earning power demonstrated (Future projections are of no interest to us, nor are turnaround situations.) 3. Businesses eaming good returns on equity while employing little or no debt 4. Management in place (We can't supply it) 5. Simple businesses if there's lots of technology, we won't understand it) 6. Offering price (We don't want to waste our time or that of the seller by talking, even preliminantly, about a trans- action when price is unknown) The larger the company, the greater will be our interest: We would like to make an acquisition in the $5 billion to $20 billion range. We are not interested, however, in receiving suggestions about purchases we might make in the general stock market We will not engage in unfriendly takeovers. We can promise complete confidentiality and a very fast answer- customarily within five minutes as to whether we're interested. We prefer to buy for cash, but will consider issuing stock when we receive as much in intrinsic business value as we give. We dont participate in auctions Charlie and I frequently get approached about acquisitions that don't come close to meeting our tests: We've found that if you advertise an interest in buying collies, a lot of people will call hoping to sell you their cocker spaniels. A line from a country song expresses our feeling about new ventures, turnarounds, or auction like sales: "When the phone don't ring, you'll know it's me." Source: Berkshire Hathaway Inc. annual report, 2014. We are eager to hear from principals or their representatives about businesses that meet all of the following criteria: 1. Large purchases (at least $75 million of protax eamings unless the business will fit into one of our existing units) 2. Consistent earning power demonstrated (Future projections are of no interest to us, nor are turnaround situations.) 3. Businesses eaming good returns on equity while employing little or no debt 4. Management in place (We can't supply it) 5. Simple businesses if there's lots of technology, we won't understand it) 6. Offering price (We don't want to waste our time or that of the seller by talking, even preliminantly, about a trans- action when price is unknown) The larger the company, the greater will be our interest: We would like to make an acquisition in the $5 billion to $20 billion range. We are not interested, however, in receiving suggestions about purchases we might make in the general stock market We will not engage in unfriendly takeovers. We can promise complete confidentiality and a very fast answer- customarily within five minutes as to whether we're interested. We prefer to buy for cash, but will consider issuing stock when we receive as much in intrinsic business value as we give. We dont participate in auctions Charlie and I frequently get approached about acquisitions that don't come close to meeting our tests: We've found that if you advertise an interest in buying collies, a lot of people will call hoping to sell you their cocker spaniels. A line from a country song expresses our feeling about new ventures, turnarounds, or auction like sales: "When the phone don't ring, you'll know it's me." Source: Berkshire Hathaway Inc. annual report, 2014
