Sydney, New South Wales (October 20, 2014) – Berkshire Hathaway is one of the most admired organisations in the world for having effectively invested in corporations like GEICO Auto Insurance, American Dairy Queen Corp., and H.J. Heinz Company. The company–especially its legendary chairman Warren Buffet–is known for making good investments and driving executives to perform better for the benefit of shareholders and customers. More than that, Berkshire Hathaway is well-regarded for its grasp of the concept of intrinsic value, which Mr. Nahi Gazal reviews for the benefit of Australian corporations.

Intrinsic value is the discounted value of the future cash flows of a business throughout its lifetime. Berkshire Hathaway operates under the notion that computing intrinsic value is the only logical approach to evaluating the attractiveness of investments and businesses, as the method yields an estimate and not a precise figure which has to be adjusted when changes to important factors affecting cash flow forecasts become apparent. Gazal explains that everything that affects a business’s ability to generate income, incur expenses, and manage assets–including how executives manage their companies–would result to changes in intrinsic value.

In Gazal’s opinion, Berkshire Hathaway’s concept of intrinsic value is more than just a precise and logical definition of how to assess an investment. In his view, it is also serves as a strong reminder for executives and managers that they must exert every effort to manage their companies well. Previous Nahi Gazal reviews have touched on the importance of active company management and, from a purely finance perspective, understanding how the choices managers and executives make affect investor and consumer relations.

Gazal reminds seasoned and neophyte businessmen alike that they need the help of investors, together with that of the customers, to succeed in any venture they engage in. More of his insights can be read at www.NahiGazal.com.

About Mr. Nahi Gazal

He is a well-received consultant to many respected and rising Australian conglomerates. Having worked as CEO and executive of various companies himself, he knows that it is important for businesses to maximise shareholder wealth value.