Warren Buffett bought our stock
Yesterday, Berkshire Hathaway reported its latest positions.
What’s interesting? One of their new positions is a stock we already owned for quite some time.
It’s lovely to have Warren Buffett on board as a shareholder.
It reconfirms our investment thesis.
The stock is up +14% before-market.
Transaction Warren Buffett
Let’s be honest with each other.
It’s probably not Warren who executed the transaction.
Most investment transactions are executed by Ted Weschler and Todd Combs, who will manage Berkshire’s huge equity portfolio once Buffett steps down.
Berkshire Hathaway bought the stock for $266 million.
Relatively seen, this is peanuts as Berkshire has a cash position of $277 billion (!).
From left to right: Warren Buffett, Ted Weschler, and Todd Combs
Investment thesis
We like the stock for sure.
We are a proud owner and think the company can compound at above-average rates for very long periods.
Today, the company trades at its cheapest valuation ever.
Our model gives an expected return of 15.3% per year. This indicates the stock should double within 5 years.
Do you want to find out which of our stocks Buffett just bought and receive the full investment rationale?
Become a Partner of Compounding Quality and find out right away:
Talk to you soon!
Pieter (Compounding Quality)