Greg Abel's First Big Acquisition for Berkshire Hathaway Shows Him Following in Warren Buffett's Footsteps
Key takeaways
- BRK-B NVDA Warren Buffett transformed Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) from a failing textile company into a massive trillion-dollar conglomerate over his 60 years as CEO.
- In the last few years of his tenure as CEO, Buffett found few great investment opportunities, allowing Berkshire s cash pile to grow to nearly $400 billion.
- In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia.
BRK-B NVDA Warren Buffett transformed Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) from a failing textile company into a massive trillion-dollar conglomerate over his 60 years as CEO. At the core of the transformation is an investment philosophy rooted in buying excellent companies at a fair value and holding them for the long run, preferably forever.
In the last few years of his tenure as CEO, Buffett found few great investment opportunities, allowing Berkshire s cash pile to grow to nearly $400 billion. Greg Abel has shown a willingness to start deploying relatively small chunks of that capital in his first few months as CEO, and he recently agreed to a deal that would put about $8.5 billion of Berkshire s cash to work in an acquisition that follows in Buffett s footsteps.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »