An interesting story appeared on Bloomberg today about Buffett's most recent filing with the SEC on behalf of Berkshire Hathaway (NYSE: BRK.A). The most interesting part of his portfolio, in my opinion, was his position in Dow Jones and Co. (NYSE: DJ).
This position was especially interesting because it clearly wasn't a traditional, long-term value play -- the type that Buffett has become so famous for investing in. Contrarily, this seems like a classic arbitrage play. The company was in a bidding war with a variety of potential buyers, most notably Rupert Murdoch of NewsCorp (NYSE: NWS), who actually won the company.
The article cited influential value investor Mohnish Pabrai who said "There's no way he would have bought this company outright, especially in a bidding war, but he loves arbitrage ... he probably expected all the egos to come in and a lot more bidding to happen."
Although no one can know for certain at what price Buffett bought the stock, it's interesting to see that Buffett's arbitrage interests are still alive and well.
People interested in Warren Buffett's shorter-term strategies should check out James Altucher's Trade like Warren Buffett, an interesting book on the often-unknown strategies partially responsible for Buffett's tremendous success at his partnership and Berkshire Hathaway.
Although no one can know for certain at what price Buffett bought the stock, it's interesting to see that Buffett's arbitrage interests are still alive and well.
People interested in Warren Buffett's shorter-term strategies should check out James Altucher's Trade like Warren Buffett, an interesting book on the often-unknown strategies partially responsible for Buffett's tremendous success at his partnership and Berkshire Hathaway.
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