Can Child Toys Create Problems?

Can Child Toys Create Problems? Every child has a favorite toy bought or custom made by parents or older siblings, if that is not the case a replica from the available objects in a childs environment. Traditionally toys such as dolls were made from clay, wood or wax, airplanes from paper and cars from malleable cable. All these were materials could be obtained from nature or the environment easily. However, all this has changed with post-modernity and urbanity. With post-modernity comes capitalism, which has industries invent products that will fetch huge sums of money from the populace. Artificial substance has seen its way in production of ample toys to cater for the increasing demand. Technology has also found its way into the childrens objects, as they are available with real movement and voice hence making them popular for children. Toys are important in children growth and very dear to them a reason they clutch to them at all times. In addition, parents in a bid to provide sufficiently for their children invest heavily on toys to make their children happy. Nevertheless, the very toys parents rush to in stores to keep up with the latest fad can be harmful to children. Children develop physically, socially and emotionally. Childhood helps determine character for an adult. An adult with a questionable character must have acquired it in childhood. This happens when parents overwhelm their children with toys that create social and emotional problems. The twentieth and twenty-first centuries present the world with postmodernism, which has families living in cities. Cities, unlike the rural areas have limited playing fields owing to the fact that developers are always coming up with commercial buildings. Similarly, cities are full of activity on the outdoor therefore making it unsafe for children to play. Pollution, unsafe road usage by drivers and crimes such as kidnapping make it difficult for parents to let their children out for play. These circumstances of city life have contributed to the popularity of modern toys, which according to Goldstein are efforts to curb bodily harm. Recreation activities for children move inside the house a thing that has led to the growth of technological toys. These toys allow for private recreational activities (5). In the past, without the hustles and bustles of city life children could enjoy play with friends an alien occurrence for todays children who live in isolation. Isolation of children n ot only impedes speech but also makes the child to be timid unlike children who play outdoors (Liz Hollis, The Guardian 16). Such children never learn the value of sharing by interacting with other children. Toys not only serve the purpose of enjoyment but also education. However, some of the toys chosen may impede originality and thoughts. Television as an object of entertainment has children glued to the screen passively watching the creativity of others rather than manufacturing their own fun (Cambre and Hawkes 13). This has the effect of children not thinking on their own and having the television dictate their thoughts. Therefore, the teachers have a difficult time in teaching such children. Computers and computer games also give the same effects of lack of originality. Parents on the other hand, feel pressurized by advertisers to invest in electronic toys that according to Lucy Ward are not specifically advantageous in education (The Guardian). Parents who just buy toys because they are on sale instead of looking for the benefits they bring to a child is an impulse buyer and may pass on the value of extravagance to the child. In addition a customer society is created by television which advertises for toy companies. Parents are held culprits of responding to each technological innovation in order to please their children. Similarly, computers as toys render the children to attend to obscene material through the internet. This is because parents leave their children in the refuge of toys as they are busy earning a living. Consequently, children fall culprits of unlawful dealings such as child trafficking, abuse, child pornography, theft and abduction. This is because chi ldren are inexperienced in the proper use of the internet. Other toys such as guns and dolls have effects on behavior and emotions. Cambre and Hawkes argue that, research over the course of many years à ¢Ã¢â€š ¬Ã‚ ¦has shown aggressive play can and sometimes does lead to violent behavior (18). This could only mean that any time a parent buys a toy gun for his/her child there is a possibility that the child at some point will exhibit brutality. Other traits such as despair and compulsion to drug abuse also emanate. Similarly, dolls shape the dreams of young girls who would want to be petite and attractive as seen in Barbie the doll (Cambre and Hawkes 17). Consequently, children will abstain from eating to maintain a slim body figure. This also explains why teenagers suffer from disorders such as anorexia. Girls inspired by the Barbie doll will obviously suffer from low self-esteem should their body size increase. On the other hand, children form inactivity from watching television and playing computerized games, such children can become obese. This is due to the fact they have no activity that bring them to physical exercise all they do is eat, sit, be simulated and not think. The other social problem presented by toys has to do with stereotype of gender roles. Girls often have toys with a kitchen setting or dolls, which they nurture while the boys have cars, shooting video games or racing cars. These stereotypes also affect careers where girls believe they should be homemakers while boys explore in fields that require masculinity and aggression. Feminists argue that gender-free play is essential if girls are to grow up realizing they can pursue any career they choose in adult life and if boys are to realize that making a home is a shared endeavor (Goldstein 21). This therefore calls for parents to buy their children a variety of toys to enable them to experience different gender roles. The divide on gender roles is not the only accomplishment as toys also bring about a class divide of the haves and the have-nots (Cambre and Hawkes 21). Rich parents can always spoil their children into having any fad toy while struggling parents will have their children possessing old and broken toys because they do not have the money to move with the trends. The divide is visible when children bring their toys to school and this may contribute to low self-esteem in children who do not have trendy toys. According Donahoo, parents with autistic children are in pains to get money to invest in an ipads to aid in development of their children even though the gadgets do not work to provide development (Wired Magazine). This clearly shows that the technological toys are not items that every parent can afford. Children whose parents cannot afford will have to make use of alternative development techniques. Unlike in the past where a child held a single toy dearly because it took a lot of energy and material to make one. Today children have toys spilling all over the house. Once it gets broken, it can always be replaced. In fact, a child can intentionally destroy one in order to get a new and trendier one. Such children make up for the adults who are money-oriented (Goldstein 21). These children may grow to despise children from poor families. The problems caused by modern toys are mostly social in nature and very few are emotional. Other problems created by toys are pollution. The artificial material making the toys mainly plastic cannot decompose. Therefore, when disposed on to land the soil does not aerate properly hence making it not suitable for cultivation. In addition, materials manufacturing toys and the wonderful colors used on them could be harmful for ingestion. Parents should pay caution when making purchase to ensure the material and paint are not harmful. Every technological progression comes with both advantages and disadvantages. Childrens toys are one such advancement that we should embrace as well as scrutinize to ensure that the children are learning while having fun. To counter for the social, emotional and environmental problems caused by childrens toys parents must take an active in being present during play. This is in order to encourage creativity and imagination, which lacks in the use of modern toys. Children should also be encourage to play outdoors where they play while enjoying nature and learning about it. For example, a visit to the parks will not only help children to interact with others but also creative play can come up such as hide and seek. Children also need assurance from parents on their uniqueness in form and character hence they will avoid falling prey into the internet evils of sexual abuse. Furthermore, their self worth should be defined by parents assurances instead of toys. Children should be encouraged to read or read to stories as reading makes the mind active in imagination. Play should not a whole day without a break as this will help the child think of the next activity in plan hence making the mind active. Modern toys are result of continued advertising from televisions that make parents attend to the messages and heed to them without questioning the impact involved. The television continues to play its role perfectly at the expense of innocent children. It is therefore the obligation of every parent to make sound judgment when buying the next fad toy in the market. The parent should also practice using it to find out what impacts is had on him/her before releasing it to the vulnerable child. Toys should be bought according to age to ensure that the specific needs of the child are met. Parents should in addition invest in a few toys to test how that effects on the child and thereby prepare the child for the eventualities of life. Finally, the culture of homemade toys should be renewed to allow for creativity. Clay is fun to work with and it will have children making their own designs that describe the world as they see it.

Belonging

Belonging Essay The concept of belonging is essential in our lives as it brings about acceptance and connection to a person, group or place. Migrants often experience alienation and exclusion before experiencing acceptance and belonging into the new society. Peter skrzynecki portrays migration as a painful, soul searching experience, re forging a sense of personal and cultural identity which is evident in Migrant hostel. On the contrary Peter displays a perspective were the family feels stability and security at their address 10 Mary Street.The journey to belong often proves to be a great burden; the lack of social stability generates a sense of loss and insecurity leaving migrants struggling to adjust to their new cultural environment. This is established in the first stanza of Migrant hostel through the choice of words such as â€Å"sudden/wondering†, which illustrates uncertainty and doubtfulness of what is occurring around them, therefore living erratic and uncertain lives .The idea of not being in control of their lives is further emphasized in the first stanza with the use of the simile â€Å"we lived like birds of passage†, this creates a image of migratory birds and represents how the migrants are at a point of transaction in reality. Peter creates a picture of confinement and imprisonment via the symbol of a barrier â€Å"A barrier at the main gate†, represents obstacles to their dream of belonging and exclusion from mainstream Australia.The Migrants are shown as being powerless and their lives have been marked by disorientation, â€Å"unaware of the season/whose track we would follow†, highlights the whole migrant communities uncertainty as â€Å"we† is inclusive of all migrants and shows that all migrants experience similar hardship. The irony of the concluding lines â€Å"that had only begun or were dying†, accentuates the burden of uncertainty in their lives instead of surviving in their new homeland and exp erience a new sense of belonging their lives remain in limbo.However, people eventually experience belonging which is evident in 10 Mary Street as it is a stark contrast to Migrant hostel as there is insecurity while there is a feeling of security in 10 Mary Street due to the family’s long term connection to their home and Australia itself. The repetition of â€Å"nineteen years† reinforces how long term residency establishes a place of belonging. Peter also repeats ‘eight years† in St Patrick’s as Peter is pointing out how peoples sense of belonging is strengthened over a long period of time.Furthermore, the simile â€Å"like a well-oiled lock†, symbolizes security and highlights how the family is experiencing security at their family home. The poem also highlights how the family’s strong affinity with the garden represents settlement and permanency in Australia. The simile like â€Å"adopted children† emphasizes the parent†™s great care and love for their garden and symbolizes their belonging to their new homeland. The act of Peter ravaging the garden represents how the garden provides the family with food and sustenance.The garden is a representation of their new homeland as Australia also provides them with work, opportunity and a good life. The house is described as part of the family through the personification â€Å"the house stands† this portrays the house as another member of the family as it shows belonging and relation to the house. The metaphor â€Å"Inheritors of a key that’ll open no house†, highlights the poets appreciation of his family and their home, the experience is cherished however when the house is pulled down, he believes he will never be able to experience such warmth when he moves on in life.In conclusion, it is evident that a person will establish a connection with a place or person with time, however will go through hardships and feelings of unfamiliari ty before finding security and belonging to their new homeland. Migrant hostel emphasizes how life’s adversities can hamper peoples sense of belonging, while 10 Mary Street portrays how people adapt to their new homeland to become â€Å"citizens of the soil† and experience stability and security. Belonging Belonging can be a possible path to an individual’s self-actualisation. A sense of identity can be identified by belonging or not belonging to a particular group or place. A person can portray different values of belonging through different situations and settings, like in Shakespeare’s period and the period in ‘Fight Club’. Maslow’s Hierarchy of belonging suggests that belonging is one of the basic needs of human existence. All humans aspire to belong but only a few are able to transcend this basic human need and become self-actualised individuals who rise beyond their social expectations and go against the conventions that define them.This is portrayed through the characters in ‘As You like It’ that flee to the Forest of Arden but eventually return because that is where they truly belong. As well as ‘Tyler’ in Fight Club. Belonging is a possible path to one’s individual self-actualisation, which can be identified vi a various mediums as witnessed through David Fincher’s Fight Club and Shakespeare’s As You Like It. Maslow’s hierarchy extrapolates the basic fundamentals of belonging suggesting that belonging is ones fundamental need of human existence.This notion is illustrated through Tyler Durden in Fight Club as well as characters in â€Å"As You Like It† where individuals strive to transcend the basic human necessity of belonging and become self-actualised individuals who rise beyond their social expectations and defy conventions defining them. Fight club demonstrates the aspects of belonging through the relationship between the narrator and his alter ego, Tyler Durden. It is a commentary on our ‘lost’ generation. The relationship shows the changes the narrator undergoes throughout the film.The Fight Club has an appeal to the lost generation. The narrator with the help of Tyler Durden founded Fight Club as a way of venting aggression physically through fighting other men. It begins with him fighting Tyler (although he is actually fighting himself) but soon other men want to join and have fights of their own. The men of our generation have been raised to avoid fighting, but suddenly they realize along with the main character, â€Å"I just don’t want to die without a few scars. Fight Club is an expression of modern dysfunctionality of modern context that have so alienated the individuals into ‘nameless’ and ‘androgynous’ emasculated male figures. General society has adopted this aspect just the same as society has adopted the consumer identity. Tyler Durden says â€Å"We are byproducts of the lifestyle obsession. Murder, crime, poverty, these things don’t concern me. What concerns me is celebrity magazines, television with 500 channels, some guy’s name on my underwear, Rogain, Viagra, Olestra, Martha Stewart. Tyler describes a life style that is defined by things you don’t nee d. From here we run into the consumer identity. The consumer identity is the understanding that you are what you buy; you exist to express yourself in material possessions. The goal is to simply look impressive not be impressive, so you can appear to have more money than you really do. In a society that claims the consumer identity, the ultimate sacrifice would be to put your projected reputation on the line. In modern society, this is too risky for many people and that is the main reason why fights are avoided.However, by embracing the idea that you aren’t what you own, you are only what your hands are capable of, you can free yourself of everything you have tried to appear as with every punch you give or take. The fighting is a metaphor for feeling, not promoting physical combat. The narrator states â€Å"fight club isn’t about winning or losing. It was about words, when the fight was over, nothing was solved, but nothing mattered. Afterwards we all felt saved†. The concept of belonging not only deals with acceptance, but also rejection and alienation. This concept can influence our belonging to a place or group.This is explored through Shakespeare’s play â€Å"as you like it†. Throughout the novel, ‘as you like it’ explores the idea of belonging to place. The title itself gives the play to the audience, implying belongs to those viewing it. Throughout the novel, we can clearly detect the characters desires to belong as dictated by the social religious hierarchy of the renaissance drawn out by the church and king in the form of the chain of being. According to Shakespeare text and his context, everyone has their rightful place. If one place is altered or disturbed, there is chaos and anarchy.Hence, ‘As You like It’ is a reaffirmation of the chain of being where Duke seniors dukedom has been altered by his younger brother Frederick, and this causes the chaos that leads to many of the characters flee ing to the place they belong to into the forest. In As You like It, the traditions of society push characters to play certain roles. Rosalind, the protagonist, has no control over society and gender expectations presented to her. Even though she is the most interesting, intelligent and active character in the novel, she is confined into the expected female role.This suppresses her personality to be expected to fit into and belong at the court. Her attempts at conformity lead her to initially feel fear at seeking out the Forest of Arden because such a place would be dangerous for a woman. She overcomes this by transcending gender boundaries choosing to disguise herself as a man. While she is a man, she is able to explore her true personality and identity. Is she had not used the role of Ganymede in the forest; she may have been left in a similar role to Celia who is unable to shake her constraints of femininity.Ultimately, the different values of belonging in different situatuations is seen in both texts through Tyler in Fight Club where he creates a place for people who have the same daily routine to break free from this and to vent their anger by fighting. This fighting is a metaphor for freedom, Freedom from their daily lives and the idea of the consumer identity. This form of freedom and belonging is also seen in ‘As You Like it’ where Rosalind breaks the female stereotype of not being strong enough to protect herself in the forest of Arden, where she runs away to. Belonging Belonging Essay The concept of belonging is essential in our lives as it brings about acceptance and connection to a person, group or place. Migrants often experience alienation and exclusion before experiencing acceptance and belonging into the new society. Peter skrzynecki portrays migration as a painful, soul searching experience, re forging a sense of personal and cultural identity which is evident in Migrant hostel. On the contrary Peter displays a perspective were the family feels stability and security at their address 10 Mary Street.The journey to belong often proves to be a great burden; the lack of social stability generates a sense of loss and insecurity leaving migrants struggling to adjust to their new cultural environment. This is established in the first stanza of Migrant hostel through the choice of words such as â€Å"sudden/wondering†, which illustrates uncertainty and doubtfulness of what is occurring around them, therefore living erratic and uncertain lives .The idea of not being in control of their lives is further emphasized in the first stanza with the use of the simile â€Å"we lived like birds of passage†, this creates a image of migratory birds and represents how the migrants are at a point of transaction in reality. Peter creates a picture of confinement and imprisonment via the symbol of a barrier â€Å"A barrier at the main gate†, represents obstacles to their dream of belonging and exclusion from mainstream Australia.The Migrants are shown as being powerless and their lives have been marked by disorientation, â€Å"unaware of the season/whose track we would follow†, highlights the whole migrant communities uncertainty as â€Å"we† is inclusive of all migrants and shows that all migrants experience similar hardship. The irony of the concluding lines â€Å"that had only begun or were dying†, accentuates the burden of uncertainty in their lives instead of surviving in their new homeland and exp erience a new sense of belonging their lives remain in limbo.However, people eventually experience belonging which is evident in 10 Mary Street as it is a stark contrast to Migrant hostel as there is insecurity while there is a feeling of security in 10 Mary Street due to the family’s long term connection to their home and Australia itself. The repetition of â€Å"nineteen years† reinforces how long term residency establishes a place of belonging. Peter also repeats ‘eight years† in St Patrick’s as Peter is pointing out how peoples sense of belonging is strengthened over a long period of time.Furthermore, the simile â€Å"like a well-oiled lock†, symbolizes security and highlights how the family is experiencing security at their family home. The poem also highlights how the family’s strong affinity with the garden represents settlement and permanency in Australia. The simile like â€Å"adopted children† emphasizes the parent†™s great care and love for their garden and symbolizes their belonging to their new homeland. The act of Peter ravaging the garden represents how the garden provides the family with food and sustenance.The garden is a representation of their new homeland as Australia also provides them with work, opportunity and a good life. The house is described as part of the family through the personification â€Å"the house stands† this portrays the house as another member of the family as it shows belonging and relation to the house. The metaphor â€Å"Inheritors of a key that’ll open no house†, highlights the poets appreciation of his family and their home, the experience is cherished however when the house is pulled down, he believes he will never be able to experience such warmth when he moves on in life.In conclusion, it is evident that a person will establish a connection with a place or person with time, however will go through hardships and feelings of unfamiliari ty before finding security and belonging to their new homeland. Migrant hostel emphasizes how life’s adversities can hamper peoples sense of belonging, while 10 Mary Street portrays how people adapt to their new homeland to become â€Å"citizens of the soil† and experience stability and security.

Purinex, Inc Warren Buffett Essay

1. What is the possible meaning of the changes in stock price for Berkshire Hathaway and Scottish Power plc on the day of the acquisition announcement? Specifically, what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp? Answer1: The increase in the stock price of Scottish Power plc and Berkshire Hathaway indicate a market approval for the acquisition and created value for both buyers and sellers. Answer2: a. the possible meaning of the changes in stock price is due to the fact that the deal created value for both buyers and sellers; Berkshire was more diversified after the acquisition. b. The $2.55 billion gain in Berkshire’s market value of equity implied that the intrinsic value of PacifiCorp was good because it fell within the range of competitors based on the following calculations: $2.55 billion / 312/18 million = $8.17 – Berkshire is willing to pay this premium for each share of PacifiCorp 5.1 billion / 312.18 million = $16.30 per share of PacifiCorp $8.17 + 16.30 = $24.47 (see Exhibit 9) Answer3: The possible explanations in the change in stock price for Berkshire would be for a couple of reasons. One of them is that investors invest based on the behavioral finance theory which implies that their investments are driven by psychological factors. These factors would be that believing that Mr. Buffet is the guru of investment, therefore he is right and it must be a very good investment. Moreover looking at the financial statements of march 2005 we see that the book value of PacifiCorp = 3377.1 Billions/312.12 million shares =$10.82 per share. However, the increase of 2.17 billion dollars at the day of the announcements of Berkshire implies that that true value of PacifiCorp should be higher if we divide the 2.17 billions /312.12 million shares we have that the PacifiCorp share should have a $ 6.95 dollar value higher. 2. Based on the multiples for comparable regulated utilities, what is the range of possible values for PacifiCorp? What questions might you have about this range? Answer1: a. we find the range of possible values for PacifiCorp in Exhibit 10. i. Revenue median of $6.252 Billion, mean of $6.584 Billion. ii. EBIT median of $8.775 Billion, mean of $9.289 Billion. iii. EBITDA median of $9.023 Billion, mean of $9.076 Billion. iv. Net Income median of $7.596 Billion, mean of $7.553 Billion. v. EPS median of $4.277 Billion, and a mean of $4.308 Billion. vi. Book value median of $5.904 Billion, mean of $5.678 Billion. b. Question about revenue; the implied value of PacifiCorp is giving impractical results for range of revenue as compared to EBIT, EBITDA, & Net income (Expected: Revenue > EBITDA > EBIT > NI). Answer2: Alliant E. Corp Low price P/E =23.50/1.42=16.55 High price P/E =28.80/1.42=20.28 Cinergy Corp Low price P/E =34.90/1.42 =16.23 High price P/E =42.60/2.15=19.81 NSTAR Low price P/E =22.70/1,79=12.75 High price P/E =27.20/1.78 =15.28 SCANA Corp Low price P/E =32.80/2.34=14.02 High price P/E =39.70/2.34 =16.93 WEC Low price P/E =29.50/2.62=11.26 High price P/E =34.60/2.62 =13.21 Industry average low price P/E=14.20 Industry average high price P/E =17.11 PacifiCorp EPS =0.81 Stock price of PacifiCorp= EPS x (P/E industry) Range of PacifiCorp possible values Low price >0.81Ãâ€"14.20= $11.50 High price >0.81Ãâ€"17.11=$13.86 Possible value for PacifiCorp using EBITDA Total value Company =market value + net debt Market multiple =total value company /EBITDA EBITDA Alliant E. Corp= 7.45x NSTAR 7.53x SCANA Corp 9.25x WEC 8.47x Average =8.18x Total value of company = Market multiple X EBITDA PacifiCorp’s EBITDA=1093.30 Market multiple =8.1 Value of PacifiCorp = 8.18Ãâ€"1093.30 =8,943.19 million dollars 3. Assess the bid for PacifiCorp. How does it compare with the firm’s intrinsic value? As an alternative, the instructor could suggest that students perform a simple discounted cash-flow (DCF) analysis. Answer1: If you use CAPM for the simple DCF analysis: K=rf+B(rm-rt) rf =5.762K=5.762+.75(10.5-5.762) B=.75=9.32%=Discount rate rm=10.5 $5.1/(1+.0932)=$4.76 => it is in range of the rest of the comparable firms. Answer2: 4. How well has Berkshire Hathaway performed? How well has it performed in the aggregate? What about its investment in MidAmerican Energy Holdings? Answer1: Overall, Berkshire Hathaway has performed brilliantly in the last 40 years. Berkshire’s class A shares have been among the highest-priced shares on the New York Stock Exchange, in part because they have never had a stock split and never paid a dividend, retaining corporate earnings on its balance sheet in a manner that is impermissible for private investors and mutual funds. The company averaged an annual growth in book value of 20.3% to its shareholders for the last 40 years. Answer2: It has performed very well. Berkshire Hathaway has consistently outperformed the market since its inception in 1965. In 1977, the firm’s year end closing share price was $107; on May 24, 2005 the closing price on its Class A shares reached $85,500. Berkshire has had an annual increase of wealth of 24% since 1965, which is more than double the 10.5% of the average increase for other large stocks. It started out with a decline due to inflation, technological change, and intensifying competition from foreign competitors, but has recuperated well after closing the textile side of their business. Berkshire Hathaway had recently been performing below S&P 500 Index according to Exhibit 1, from April 2005 to May 2005. Scottish Power had consistently outperformed the S&P 500 Index from March to May 2005. This probably was one aspect that attracted Berkshire to purchase PacifiCorp. We believe that it was a good investment. In 2002 they owned 9.9% of the voting interest and 83.7% of the economic interest in the equity of MidAmerican. This allows them to have a major stake in the company without violating utility laws, which has proven to be successful for them. According to Exhibit 6, MidAmerican Holdings had a net earnings of 170 million in 2004, but compared to 2003 net earnings of 416 million, MidAmerican had a net loss from 2003-2004. Acquiring PacifiCorp would supply much needed new, more profitable investments to raise their net income in 2005. Answer3: Performance of Berkshire since 1977 to 2005 PV=102 FV=85500 N=28 I=34% ` S & P performance since 1977 to 2005 PV =96 FV=1192 N=28 I=9.42 Berkshire has outperformed S & P by 24.58% 5. What is your assessment of Berkshire’s investments in Buffett’s Big Four: American Express, Coca-Cola, Gillette, and Wells Fargo? Answer1: They invested in well established and successful firms. They put a lot of money up front for these investments, but since have made substantial gains for their investment. The total cost to Berkshires investment in the Big 4 was $3.832 Billion, but the market value of their investment was $24.681 Billion. This means that Berkshire’s current gain on their investment in the big 4 is $20.849 Billion. Their gain is 5.44 times their investment I would have to say that these were very well thought out and successful investments. Answer2: Buffet’s approach of investments is based on the fundamental analysis of the company itself. It is based on simplicity and consistency of its operation history, attractiveness of long term prospects, quality of management and firm’s capacity to create value. The big four, Coca-Cola, American Express, Gillette and Wells Fargo have all these characteristics. For instance Coca- Cola has been in business since 1919(Reuters). It is a multinational with the biggest market share worldwide. Coca-Cola’s finished beverage products bearing its trademarks are sold in more than 200 countries (reuters.com). Buffet looks at what the consumers are looking for and what the general economic trend is at that time and what it will be over time. He researches a company as a whole and looks at what people want and what people are transitioning into in the future. For instance most of his investments in the big four were done in 1992. During these 13 years we can see how well the big four have performed compare with the S& P 500 S & P 500 At January 1992 adjusted to dividends and splits =408.78 At December 2005 adjusted to dividends and splits =1248.29 n=13 Return =8.96% American Express. Price at January 1992 adjusted to dividends and splits =4.02 Price at December 2005 adjusted to dividends and splits =49.68 N= 13 Return =21.34% Wells Fargo Price at January 1992 adjusted to dividends and splits =2.69 Price at December 2005 adjusted to dividends and splits =28.25 N=13 Return =19.82% Coca-Cola Price at January 1992 adjusted to dividends and split =14.5 Price at December 2005 adjusted to dividends and splits 37.50 N=13 Return =7.50% 6. From Warren Buffett’s perspective, what is the intrinsic value? Why is it accorded such importance? How is it estimated? What are the alternatives to intrinsic value? Why does Buffett reject them? Answer1: a. the discounted value of the cash that can be taken out of a business during its remaining life. Intrinsic value is per-share progress. Buffett assessed intrinsic value as the present value of future expected performance. b. Because if focuses on ability to earn returns in excess of the cost of capital, not accounting profit. Only logical way is to evaluate the relative attractiveness. c. The gain in intrinsic value could be modeled as the value added by a business above and beyond the charge for the use of capital in that business. d. Accounting profit, performance of Berkshire by its size, consolidated reported earnings e. Accounting reality was conservative, backward looking, and governed by GAAP (measures in terms of net profit). Investment decisions should be based on economic reality. This includes intangible assets such as patents, trademarks, special managerial expertise, reputation, etc. Answer2: The definition of intrinsic value according to Mr. Buffet is the present value of all future expected cash flows or performance. The measurements of intrinsic value are focused on the ability of the company to earn a return in excess of the cost of capital including the opportunity cost. Intrinsic value is not based only on the net profit. Alternatives to intrinsic value: 1) Accounting profit. Mr. Buffet believes that the true value of a company is based on its intrinsic value not on its accounting profit. Financial statements prepared by accountants are conformed around rules that do not adequately represent the economic reality of business. 2) Technical analysis. Mr. Buffet rejects the technical analysis that attempts to predict the stock prices based on momentum of trends. He believes in long term investment. 3) Efficient market hypothesis. Mr. Buffet rejects the efficient market hypothesis theory (EHM). He believes that there are opportunities out there. Investing should be based on information analysis of the company. 7. Critically assess Buffett’s investment philosophy. Be prepared to identify points where you agree and disagree with him. Answer1: Warren Buffett has a very simple method of investment strategy compared to other investors. Buffett’s philosophy is defined in 8 elements. We will discuss whether we agree or disagree with each one individually. We agree with Buffett’s first element of analyzing economic reality of investments. Most investors focus on financial statements and net profit, but don’t take into consideration intangible assets such as management experience and patents. We also agree with Buffett’s second element of lost opportunity cost comparison. By analyzing expected returns of an investment compared to the rate of return of using that same investment money in another investment, Buffett takes a simple idea that everyone uses in almost every decision, and applies it to a much more complex investment strategy. Everyone weigh’s the alternative when making a decision, whether that decision is a choice of a coffee or a coke or something more complex like a college education versus not getting an education. Buffett uses the third element of intrinsic value instead of book value or historical data to determine his investment choices. We agree with this element, but do believe a combination of the two methods would work better to show historically how the company has performed, and how much that company will be worth in the future. The rate of return reflects more of the economic value of an investment. In the fourth element, Buffett measures performance by per share basis. We do agree with his reasoning for using this method, but we think overall performance should be measured as well to show a better figure of what the whole is worth compared to the parts. The fifth element is one that we don’t agree with. Buffett uses a 30 year U.S. Treasury Bond Rate of Return instead of the traditional CAPM rate, because he believes that his investments are so solid, they don’t need risk factored in. We disagree with his choice for rate of return because all investments have a degree of risk, and return should be factored according to that level of risk. Buffett not believing in risk is like someone not believing we breathe air. Even though we can’t see it, it is still there. The sixth element is also a point of disagreement for me. Buffett says he doesn’t believe in diversification of investments, even stating that diversification is considered protection against ignorance. What Buffett does not realize is that by saying he does not believe in diversification, he is being a hypocrite. Berkshire Hathaway itself is a massively diverse company with several subsidiaries and holdings in many different industries from apparel to energy. Buffett may own most of his stock in his own company, but he knows by diversifying Berkshire, he will avoid adding more risk, which is exactly the strategy that is used by other investors when diversifying their stocks. We agree with the seventh element that investment decisions should be made by doing proper research on information about the company, and not by following an anonymous tip or a gut feeling. Finally, we agree with the eighth element that a firm’s management and shareholders should have the same goals for the firm. Management should have most of their wealth in company stock so as to serve the shareholders better in day-to-day decision making that affects the value of their investments. Answer2: Mr. Buffet does not believe in diversification. We believe that diversification helps in times like the one that the market is having right know. For instance stock value of American Express in the last year has ranged from $53 a year ago to $15 dollars this week resulting in a loss of 70 % and also the market value of Wells Fargo is down by 65% (yahoo finance). If you compare those two companies with the S & P during the last year it is only down by 40%. This also means that market risk is still there. We believe that Mr. Buffet has not had a situation in the economy such as the one that the country is having now. Even he, the guru of investments is losing money, so we know that the risk is there. We agree on his philosophy on investing behavior. It should not be driven by emotion or hunch but should be a well thought out plan that came about by information, analysis and self-discipline. If you go by hunch or emotion then anyone can work you up and sell you the worst deal of your life, but make you think it is the best one you will ever get. We agree with his belief on the alignment of owners and investors. It is always a good thing when the owner has more than 50% of his net worth invested in the company because the goal would definitely be increasing shareholder wealth. 8. Should Berkshire Hathaway’s shareholders endorse the acquisition of PacifiCorp? Answer1: Yes, PacifiCorp will add around $250 million in net income for MidAmerican Holdings if PacifiCorp keeps at its same net income pattern of the last two years. This added net income will increase shareholder wealth in Berkshire Hathaway and provide a stable long term investment for the future. Also, since PacifiCorp’s intrinsic value is comparable to the industry, Berkshire is not adding much more risk to their portfolio. Berkshire should look at adding more of these type safer investments to their portfolio. Answer2: The Berkshire Hathaway shareholders should endorse the acquisition of PacifiCorp. It took a while for Mr. Buffet to finally invest their cash equivalents because he was looking for an â€Å"elephant† which is a company that makes significant gains. Factors that make it a good acquisition include the fact that PacifiCorp is a low-cost energy producer but has the biggest market share among the energy companies which is 1.6 million customers divided among 6 states plus the intrinsic value of the company is much higher than the market value of PacifiCorp.

The Adventures Of Huckleberry Finn By Mark Twain - 1129 Words

What makes a novel racist? The novel The Adventures of Huckleberry Finn, by Mark Twain, is a story of race relations between slaves and whites and is often percieved as racist book. To understand what racism is, we have to define it. Racism is: a belief that inherent differences among various races determines cultural or individual achievement, usually involving the idea that one’s own race is superior and has the right to rule others. Going off the definition of racism, this novel represents a clear racist sentiment as white characters excercise their superiority over blacks and society considers it okay. African Americans and slaves are treated as property, considered unintelligent and gullible, and are put through unneccessary hardship†¦show more content†¦During this time period in the South, slaves were considered property. Simply because of their skin color they were labeled as less than people. By that reasoning, slavery was justified and whites excerised their belief of superiority and their ability to rule African Americans. Jim himself reinforces this idea: â€Å"I’s wuth eight hund’d dollars (Twain 41). In this society, the opinion that slaves are property and you can put a numerical and monetary value on them is so engrained that even slaves begin to believe in their inferiority; which enforces the racist sentiment. â€Å"Wells, one night I hear old missus tell de widder she gwyne to sell me down to Orleans, but she didn’t want to, but she could git eight hund’d dollars for me, en it ‘uz sich a big stack o’ money she couldn’ resis’,† (Twain 43). This quotation shows that slaves were property and simply worth the numerical value placed on them and their labor. â€Å"The first thing he would do when he got to a free state he would go to saving up money and never spend a single cent, and when he got enough he would buy his wife†¦ and then they would both work to buy th e two children,† (Twain, 88). In the South, slaves were seperated from their wives and families with no regard for them, which shows that slaves were considered so inferior and unintelligent that family ties were not important. Throughout the