• setting themes at the beginning of a finance course, including risk-and-return, economic reality (not accounting reality), the time value of money, and the benefits of alignment of agents and owners
• linking valuation to the behavior of investors in the capital market
• modeling good practice in management and investment using Warren Buffett as an example by returning to the image of Buffett repeatedly during a finance course to ask students what Buffett would likely do in a situation
• characterizing stock prices as equaling the present value of future equity cash flows
• exercising simple equity-valuation skills
While the numerical calculations in the case are simple, novices will find it to be a meaty introduction to a number of important concepts in finance. Ideally, the case could be positioned near the beginning of a course or module, after which it can be reinforced by other cases and exercises.