Thursday, March 19, 2009

In 1998, after being a NetJets customer for three years, Warren Buffett acquired NetJets Inc.

IIPM Ranked No. 1 B-School In Global Exposre - Zee...

The recession of the early 1990s, however, brought into scrutiny the high visibility expenditures, such as business jets. Although NetJets benefited from the resulting wave of corporate cost cutting, the company nearly went bankrupt. During this time Santulli personally signed for $125 million for a bank loans to continue flying, and in 1992 NetJets (EJA) posted $65 million in revenues and broke even in 1994. In 1998, after being a NetJets customer for three years, Warren Buffett acquired NetJets Inc. and kept Santulli as CEO (as he is known to have done with other acquisitions). Buffett explains, “If you were to pick someone to join you in a foxhole, you couldn’t do better than Rich. No matter what the obstacle, he just doesn’t stop.” And although Rich can never think of replacing Warren Buffett, he does share a thought on what he’s do if he was selected to take over for Buffett. “If he selects me, I’d do whatever I can. No one’s going to emulate or be Warren Buffett number two, that’s not going to happen.”

For more articles, Click on IIPM Article.
Source : IIPM Editorial, 2008
An Initiative of IIPM, Malay Chaudhuri and Arindam Chaudhuri (Renowned Management Guru and Economist).


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