Buffett Adds Hometown Newspaper - Analyst Blog
December 01 2011 - 12:38PM
Zacks
On Wednesday, Warren Buffett, the Chairman and CEO of
Berkshire Hathaway Inc. (BRK.A) (BRK.B), announced
an acquisition to buy The Omaha World-Herald Company, publisher of
Nebraska’s principal daily newspaper. The deal would add the
World-Herald, six other daily newspapers and several
weekly newspapers to its current portfolio of media business, which
includes Business Wire, Buffalo News and
Washington Post Co. (WPO).
Buffett is known for cherry-picking big businesses. This acumen
has helped him to build a conglomerate of this behemoth size, which
houses over 70 different businesses. Over decades, Berkshire has
become a mature company, which generates substantial cash quarter
after quarter, keeping Buffett on continuous hunt to seek
attractive investments in order enhance stockholder value.
In an effort to diversify its investment, Buffett focuses on a
combination of both big and small companies. This is validated by
the recent acquisition worth $150 million, which could be
categorized as a small investment compared to other recent big ones
including chemical maker Lubrizol Corp. for $9.7 billion and
railroad company Burlington Northern Santa Fe Corp. for $26.5
billion. Berkshire did not make any significant business
acquisitions in 2009, but it acquired a number of small businesses
in 2008 for a total cost of $6.1 billion.
Buffett follows the similar strategy (a combination of big and
small) for his investments in equities of other companies. This is
confirmed by his recent $10.7 billion investment in tech giant
International Business Machines Corp. (IBM) while
at the same time smaller investments, between $195 million and
$232, million in Intel Corp. (INTC), drug store
chain CVS Caremark Corp. (CVS), broadcaster
DIRECTV, Inc. (DTV), Visa, Inc.
(V) and defense group General Dynamics Corp.
(GD).
Buffett's investable assets, which ended the third quarter at
$34.8 billion, got replenished with the $3.3 billion payment from
General Electric Co. (GE) in October. Moreover, it
has been heard Buffett saying that he was quite comfortable to
spend $8-10 billion on right investment. Consequently, we expect to
hear some big acquisition news from Berkshire soon.
BERKSHIRE HTH-A (BRK.A): Free Stock Analysis Report
BERKSHIRE HTH-B (BRK.B): Free Stock Analysis Report
CVS CAREMARK CP (CVS): Free Stock Analysis Report
DIRECTV (DTV): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
GENL ELECTRIC (GE): Free Stock Analysis Report
INTL BUS MACH (IBM): Free Stock Analysis Report
INTEL CORP (INTC): Free Stock Analysis Report
VISA INC-A (V): Free Stock Analysis Report
WASHINGTON POST (WPO): Free Stock Analysis Report
Zacks Investment Research
DTE Energy (NYSE:DTV)
Historical Stock Chart
From Jun 2024 to Jul 2024
DTE Energy (NYSE:DTV)
Historical Stock Chart
From Jul 2023 to Jul 2024