Masayoshi Son may be about to answer the Warren Buffett question. It is a query that is raised with every move the SoftBank billionaire makes. Is he Japan’s answer to the “Sage of Omaha?” Or is he a dupe overpaying for deals? The question is legitimate. Son, after all, has taken heavy flak for – allegedly – single-handedly inflating tech-industry valuations, making him a one-man bubble machine. The dailyReport Must-reads from across Asia - directly to your inbox Now Son is taking the Buffett-esque step of seeking a 25% stake in Swiss Re AG, paying somewhere between US$9 billion and $10 billion. The idea is to diversify Softbank’s holdings with a stable cashflow – not unlike how Buffet’s Berkshire Hathaway operates. After all, Buffett’s stake in reinsurer General Re has been a stabilizing force for his empire. Only time will tell whether any of Son’s three big deal-related news items this week alone actually work out. … [Read more...] about Can Masayoshi Son go the full Warren Buffett?
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Warren Buffett’s firm Berkshire Hathaway is sitting on a record amount of cash. UBS speculates that the company could make an acquisition exceeding $160 billion this year, perhaps in the utilities sector. Berkshire Hathaway has never had this much cash, so naturally people have wide-ranging ideas for how the Warren Buffett-led juggernaut may use it. UBS, for one, thinks the company should make a splashy acquisition – one that could exceed a whopping $160 billion. The bank arrives at that figure by factoring in the record $109 billion of cash Berkshire had on hand at the start of February, and combining it with the company’s strong free cash flow. As for which industry Berkshire may pursue, UBS thinks utilities are a good bet. After all, the company’s energy unit made an unsuccessful $9 billion offer for the electricity provider Oncor last year and may still be interested in the sector. There is, however, one … [Read more...] about Warren Buffett has enough firepower to do a $160 billion deal this year
Store Capital’s stock price is getting a huge boost from everyone’s favorite Nebraskan investor. Store Capital, a real estate investment trust, announced a $377 million stake by Warren Buffett on Monday. This amounted to 9.8% of the company’s outstanding shares. Store Capital is known for investing in single-tenant real estate. “An investment in our company from one of history’s most admired investors represents a vote of confidence in our experienced leadership team and an affirmation of our profit-center real estate investment and management approach,” said Christopher Holk, Store Capital’s CEO. He was referring to Berkshire Hathaway chairman Warren Buffett. The Warren Buffett effect is probably in play here. Matt Levine, a Bloomberg columnist, put it best in a newsletter following Buffett’s C$2 billion credit line to Home Capital last week. “In its purest form, once you have a reputation as a smart investor, … [Read more...] about The real estate company Warren Buffett just invested in is soaring
When Warren Buffett visits New York City, he has one go-to restaurant: Smith & Wollensky. Every year, people bid millions of dollars for a meal with Buffett at the famed steakhouse. This July, a bidder agreed to pay $2.68 million to a San Francisco charity for a lunch for seven with the Berkshire Hathaway CEO. We don’t have millions of dollars to spend on a meal with Buffett. But, we were able to make a reservation at Smith & Wollensky ourselves. So, in an effort to eat like the famous investor, five Business Insider reports headed to Smith & Wollensky and told the staff to give us the Warren Buffet treatment. Here’s exactly how much the experience is actually worth. Smith & Wollensky is located in Midtown Manhattan, the center of New York’s old power corridor. The name was actually picked at random from a New York City phone book. Founder Alan Stillman flipped the book open first to Smith, amongst the S’s, then Wollensky, … [Read more...] about We ate at Warren Buffett’s favorite New York City steakhouse — which people pay millions to dine with him at — here’s what it was like
Apple’s beleaguered stock got some good news last month when Berkshire Hathaway announced that it had purchased a substantial stake in the iPhone maker. Now, thanks to a regulatory filing, we know how much the Warren Buffett-headed company paid: an average of $99.49 a share, Bloomberg reports. Berkshire Hathaway had purchased 9.81 million shares of Apple through March 14. That’s about 25% below the stock’s 52-week high, reached last summer. But it’s not quite at the stock’s lowest point: Apple shares traded as low as $89.47 in mid-May. Apple stock was down 2% in early trading on Friday to $95.55 a share. As had been previously reported, the stake in Apple wasn’t driven by Buffett. Instead, the forms show that the subordinate investment managers Todd Combs and Ted Weschler had initiated the holding. But as Berkshire bought into the technology company, other major investors including David Tepper’s Appaloosa Management … [Read more...] about Here’s how much Warren Buffett paid for his stake in Apple