The goodwill of Warren Buffett

Over the years, Buffett and Berkshire Hathaway have acquired a lot of companies and paid quite a premium for the privilege.

“Our long-held acquisition strategy is to acquire businesses that have consistent earning power, good returns on equity and able and honest management.”

Berkshire Hathaway reiterates its acquisition strategy every year, in vanilla language, in its 10-K. It also reminds investors that the good companies it acquires also typically have market values that e…