Please read "Warren E. Buffett, 2015" and research any and all articles related to the acquisition of Precision Cast Parts Corporation (PCP) by Berkshire Hathaway Inc.

On August 10, 2015, Warren E. Buffet, Chairman and CEO of Berkshire Hathaway, Inc., announced that Berkshire Hathaway would acquire the aerospace-parts supplier Precision Castparts Corporation (PCP). At the time, it was Buffett's largest deal ever. Berkshire would purchase all of PCP's outstanding shares for $235 per share in cash, a 21 percent premium over the trading price a day earlier.

The bid valued PCP's equity at $32.3 billion. The total transaction value would be $37.2 billion, including assuming PCP's outstanding debt - this is what analysts called the "enterprise value."

"I have admired PCP's operation for a long time. For good reasons, it is the supplier of choice for the world's aerospace industry, one of the largest sources of American exports" Buffett said. After the announcement, Berkshire Hathaway's Class A shares moved down 1.1 percent at market open, a loss in market value of $4.05 billion. PCP's shares jumped 19.2 percent on the news and the S&P 500 Composite Index opened up 0.2 percent.

1. What is your assessment of Berkshire Hathaway's investments in Buffett's largest equity positions? Has he been uniformly successful in making major decisions?

2. Describe the elements of Buffett's investment philosophy. How might this philosophy differ from that of other investment styles, such as a very active day trader, a chart watcher or someone who passively invests in index funds?

3. From Buffett's perspective, what is intrinsic value? Why is it accorded such importance? How is it estimated? What are the alternatives to intrinsic value? Why does Buffett reject them?

4. Critically assess Buffett's investment philosophy. Identify points where you agree and disagree with him.

5. What is the possible meaning of the changes in stock price for Berkshire Hathaway on the day of the acquisition announcement? Specifically, what does the $4 billion loss in Berkshire Hathaway's market value of equity imply about the intrinsic value of PCP?

6. Should Berkshire Hathaway's shareholders have endorsed the acquisition of PCP?

7. What have you learned from all of this analysis? (Be thorough)