1. Looking at Precision Castparts (PCP) financials in Exhibits 9 and 10 (repeated in the publishers Excel spreadsheet included with the case), how does the company fit into Buffetts criteria for a prospective acquisition candidate? Mention specific financial ratios that you think are relevant. How does PCP compare with other companies in the same industry?

Exhibit 9 Warren E. Buffett, 2015 PCP Consolidated Financial Statements Ivule - riscai yeal eIIs IvIaI Note: The market value of PCP's equity shortly before the announcement of the acquisition by Berkshire Hathaway was $31,208 million. Data source: Edgar. 1 Excludes restructuring charges. 2 Excludes equity in unconsolidated investments. 3 Excludes noncontrolling interests. Exhibit 9 Warren E. Buffett, 2015 PCP Consolidated Financial Statements Ivule - riscai yeal eIIs IvIaI Note: The market value of PCP's equity shortly before the announcement of the acquisition by Berkshire Hathaway was $31,208 million. Data source: Edgar. 1 Excludes restructuring charges. 2 Excludes equity in unconsolidated investments. 3 Excludes noncontrolling interests