Three Asset categories (according to Warren Buffet).

1>Assets that do not produce anything but may be more valuable to the next person. 

Choose either a> or b> both of which are worth $9.6 trillion.

a>170,000 metric tons of gold! That is the total gold mined to date and would fit into one football stadium.

b>Apple Corporation + 15 Exxons + 400 million acres of US cropland and $1 trillion of cash.  

2>Investments that are denominated in a currency.

A $1 in 1965 is worth $7 today! In purchasing power it has fallen 86%. Governments determine the ultimate value of money and systemic forces will sometimes cause them to gravitate to policies that produce inflation.

3>Productive Assets (only category Warren invests in).

Businesses, farms, or real estate have the ability in inflationary times to produce output that will retain its purchasing power! His preference is to buy the entire business but he is happy to own sizable amounts of marketable stocks of first class businesses.

Mergers & Acquisitions

Congratulations you have decided to acquire a business or merge your business with another to create a bigger Productive Asset!

Be aware that studies in the US and Europe show that between 50% and 75% of all Mergers & Acquisitions fail to add value! 

Follow our thoughts on the Pre-merger Plan and the Post Merger Implementation and your merger or acquisition will add value!