Description:Â Peddling credit cards isn’t so easy that a caveman can do it. That seems to be the conclusion Berkshire Hathaway (BRKA, Fortune 500) chief executive Warren Buffett reluctantly reached last year, when he shut down a money-losing credit card business he had dreamed up for Berkshire’s Geico car-insurance unit.
Questions for discussion:
- Does this article suggest that Warren Buffett might have overstepped his role as a financial guru by making a managerial decision for one of the companies that Berkshire Hathaway happened to own?
- Do you think investors in Berkshire Hathaway have changed their thinking about the management of the firm because of this loss?
- How would you expect the stock value to react, if they have?