WARREN BUFFET AND GEORGIO ARMANI

Warren Buffet and Georgio Armani

Warren Buffet and Georgio Armani

Introduction

On August 25, 1995, Warren Buffett, Berkshire Hathaway EOC announced that his company will acquire the rest of the GEICO Corporation. Thus, it's shareholders a premium of 26% of GEICO's share price in the market, $ 55.75 per share to $ 70 per share. Buffet did not propose to change any of GEICO, which stunned observers and that there was no synergy between the two companies. At the end of the day, shares of Berkshire Hathaway were 2.4%, an increase in market value of 718 million dollars and the S & P500 index was 0.05%. (Warren E. Buffet, 1995 (VA: Darden Business Publishing) page 2 of the case study.)

After passing through the armed forces Armani found a job as a window dresser at La Rinascente, a department store in Milan. He went on to become a buyer for the department of men's wear, in which capacity he gained valuable experience in the marketing aspect of the fashion industry. In the mid 1960's, Armani moved to the company Nino Cerruti, for which he designed men's clothing. His skills were in demand, and for the next decade, while working for Cerutti, Armani also freelance, contributing as much as ten designs to manufacturers at a time. In the 1960's, Armani met Sergio Galeotti, an architectural draftsman, which marked the beginning of a personal and professional relationship that lasted many years. Galeotti in 1973 convinced him to open a design office in Milan, Corso Venezia 37. This led to a period of extensive collaboration, during which Armani worked as a freelance designer for several fashion houses, including Allegri, Bagutta, Hilton, Sicons, Gibo, Montedoro and Tendresse. The international press was quick to recognize the importance of Armani after the runway shows in the White Hall of the Palazzo Pitti in Florence. Armani long experience with the opportunity to develop their own style in new ways. Now he was ready to devote his energy to his own label, and in 1975 founded Giorgio Armani SpA in Milan with his friend Galeotti. In October of that same year he presented his first collection of men's ready-to-wear for spring and summer of 1976 under his own name. He also produced a line of women for the same season.

Background

Warren Buffet is considered as an anomaly, one of the richest people in the world and respect and love. Warren Buffet may be the best investment record in history (a compound annual increase of wealth from 28% 1965-1994) (Warren E. Buffet, 1995 (VA: Darden Business Publishing) page 2 of the case study. ) Berkshire Hathaway paid him only $ 100,000 per year as the CEO of the company. Although Buffett and other insiders controlled 47.9% of the company that ran the company in the interests of all shareholders. Remained an individual, even when it was introduced in many laudatory articles and three biographies. (Warren E. Buffet, 1995 (VA: Darden Business Publishing) page 2 of the case ...