The transaction has many traits of a typical Buffett deal: he already owned a minority stake in Precision; he is a big believer in nuts-and-bolts industrial groups; and the company’s share price had come under pressure, falling by about a tenth.
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“n”>Aug 14 Warren Buffett’s Berkshire Hathaway Inc has eliminated its stakes in National Oilwell Varco Inc and Phillips 66, and on Friday signaled it may have another large investment in the works. Investment castings are manufactured by the Investment Cast Products segment and provides related investment casting alloys and materials, for armaments, IGT engines, airframes, aircraft engines and other industrial uses.
“I think he’s setting things up for the future and he doesn’t want anything terribly risky”, said Andy Kilpatrick, the investor who wrote “Of Permanent Value: The Story of Warren Buffett“. Buffet told CNBC that he would have bought the company even if he knew that commodities were in the midst of a multiyear slump.
“His selection field is extremely limited”, Morgan said.
Meanwhile, Berskhire kept unchanged its stakes in its “Big Four” holdings: American Express, Coca Cola, Wells Fargo and IBM as of June 30.
Berkshire’s bet on Charter is linked to its pending acquisition of Time Warner Cable Inc. for more than $55 billion and Bright House Networks for about $10.4 billion. It was an especially weak quarter for Berkshire’s insurance units but it illustrates the conglomerate’s increasing reliance on manufacturing, utilities and the railroad. Including debt, the deal is valued at about $37.2 billion.
Combs invested in Precision Castparts before Berkshire said on Monday it would buy the aerospace parts maker. (NYSE:PCP) and now hold any of those NYSE:PCP shares have certain options and should contact the Shareholders Foundation at mail@shareholdersfoundation or call +1(858) 779 – 1554.
Groh, a Lake Oswego-based analyst with D.A. Davidson, said Precision Castparts’ stock decline in the last year was driven mostly by weakness in the oil and gas markets and a few timing issues with aerospace customers.
“From the Berkshire perspective, they’re getting a good company on sale”, Shields said.
This price tag is going to make this purchase the biggest standalone acquisition for Berkshire Hathaway ever.
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Berkshire had been an investor in Precision Castparts since 2012 and is one of its largest shareholders with a roughly three per cent stake.
