Berkshire buys shares of Amazon - GulfToday

Berkshire buys shares of Amazon

Amazon

Employees at an Amazon facility in Maryland, US. Reuters

Warren Buffett said Berkshire Hathaway has bought shares of Internet retailing giant Amazon.com for the first time, though he has not been the one doing the buying, CNBC reported.

Buffett said the purchase was made by one of his investment managers, Todd Combs or Ted Weschler, and details would be disclosed later this month in Berkshire’s quarterly report of its US stock holdings.

The purchase marks a U-turn for Berkshire, where Buffett has long praised the leadership of Amazon Chief Executive Jeff Bezos.

“Yeah, I’ve been a fan, and I’ve been an idiot for not buying,” Buffett told CNBC.

Buffett’s assistant did not immediately respond to a request for comment.

Amazon did not immediately respond to a similar request.

Shares of companies often rise when Berkshire reveals its support through new stakes, even when the purchases are believed or known to have been made by Combs or Weschler, who together invest about $26 billion.

The initial impetus of the portfolio managers has in the past heralded Buffett’s eventual forays into some of their investments, often in big ways. It was Combs who in 2012 began investing in industrial and aircraft parts maker Precision Castparts Corp. Four years later, Berkshire completed its purchase of that company for $32 billion, in what remains Buffett’s largest acquisition.

More recently, it was either Combs or Weschler who in 2016 began investing in iPhone maker Apple.

But it was Buffett who ramped up that stake into Berkshire’s largest common stock investment, more than 255 million shares, now worth roughly $53 billion.

Reuters