When Microsoft bought Activision-Blizzard for $68.7 billion, Berkshire Hathaway bought 14.66 million shares of the company. This was before Microsoft bought the company for $68.7 billion. Because Buffett has been friends with Microsoft co-founder Bill Gates for a long time, some people were surprised by how good the timing was. Gates was on the board of Berkshire until March 2020, when he will step down.
However, in an email to the New York Post, Buffett said that the stock buys were made by “one of the two investment managers who work independently of me at Berkshire.” This is a reference to Berkshire investors Ted Weschler and Todd Combs. The stock buys were done long before the acquisition was announced.
If there was any misinformation about the purchase of Berkshire stock, Buffett said in an email that it was important for the record to be correct “after I am not around.” The email was sent to a Post reporter and two other media outlets.
Microsoft said in January that it planned to buy the video game company Activision-Blizzard.
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He told the New York Post: “To sum up, it was about three months after our manager’s first purchase that Microsoft came out with its acquisition proposal, which Berkshire did not know about.” “When Microsoft files its proxy material on its plan to buy Activision, I would be surprised if they had even talked about a deal with Activision in early October, but I don’t know.”
Buffett said that the Berkshire investor bought about 85% of the stake in October and bought the rest in November for an average price of about $77.
Berkshire Hathaway bought the shares at an average price of about $66.53 per share, the Wall Street Journal first reported, but that figure has since been changed. In the end, the outlet added the $77 average price to its storey.
That’s what Warren Buffett said. Berkshire could have bought shares of a company at the same price even if they had bought it after the deal was made public.
It’s possible that after Microsoft announced its plan, the investment manager bought $77 worth of shares at a price of $78 or so. For him, or for Berkshire, it was not a big deal at all to buy it.
In the past, Warren Buffett has tried to dispel the idea that his close relationship with Bill Gates could give him early access to Microsoft’s plans. This isn’t the first time.
On top of the fact that Gates used to be on the Berkshire board, the two are known to play bridge together. Buffett used to be on the board of the Bill and Melinda Gates Foundation.
Buffett said in 2018 that he has tried to avoid buying Microsoft stock for a long time because he was afraid that if he did, Gates would say that he told him something or that he told him something.
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