The Precision Castparts deal, which has yet to be completed, eclipses even Berkshire’s purchase of Burlington Northern railroad in 2009.
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“We’re still on that path we’ve been on for six years”, the chairman and CEO of Berkshire Hathaway told CNBC.
“We’re buying because we like what we’re buying in relation to its long-term prospects”, he said. It positions Buffett to benefit from a surge in plane sales as airline executives seek to add more fuel-efficient aircraft, like the upgraded single-aisle Boeing 737 MAX and Airbus A320neo, to their fleets.
Speaking on CNBC Tuesday, Buffett voiced admiration for Sanders choosing to run a non-critical campaign and instead focus on disseminating his platform to prospective voters, in addition to strongly criticizing the Supreme Court’s ruling on corporate and union political campaign donations. This year’s top bid of $2.3 million was submitted by Chinese gaming executive Zhu Ye, who described the event as a dream come true.
Buffett – the world’s third-richest person, according to Forbes magazine, with a personal fortune of $72.7 billion – said that while he agrees with Sanders about the need to help those left behind by the market economy, “I disagree with him very much on the production side”.
Berkshire’s Precision Castparts acquisition will be the biggest of Mr Buffett’s career, but he said it hasn’t put a crimp in other investments. Berkshire had $66.6 billion cash on hand at the end of the second quarter, and Buffett said the company has been spending about $500 million a week acquiring stock during recent market volatility.
Buffett says he bases his investments on a company’s prospects over the next five or ten years. And if Sanders had his way, Buffett would likely see an enormous tax increase that goes far beyond the tax-reform proposals that Buffett supports. Its insurance and utility businesses typically account for more than half of the company’s net income.
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“He’s not going around saying things about other people”. The event was the brainchild of Buffett’s first wife, Susie, in 2000.
