Why Warren Buffett's Spending Spree Could Continue With This 1 Stock
Earlier this week, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), a nearly $800 billion holding company that owns a diversified portfolio of businesses and stocks, announced the acquisition of Alleghany, also a holding company, for $11.6 billion. After the acquisition, Berkshire will still have a remaining cash and cash equivalents position north of $130 billion. While Berkshire is unlikely to acquire another company any time soon, here's why it could very well add to an existing position in its portfolio.
Perhaps no other investor is as well known for his or her patient, long-term investment strategy as Warren Buffett. As a result of his investing philosophies, Berkshire Hathaway has become one of the largest companies in the world. But there's a short-term investing strategy that even Warren Buffett favors, called "merger arbitrage," or buying stocks of companies trading below their acquisition price.
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Source Fool.com
