Buffett Buying Lubrizol for $9 Billion

It must be nice having $9 billion in cash sitting around. But as I mentioned before, cash pays next to nothing so you might as well put it work.

Warren Buffett’s Berkshire Hathaway (BRKA) just announced that it’s buying chemical company Lubrizol (LZ) for $9 billion.

Let’s look at some of the numbers. In 2008, LZ made $4.09 per share. In 2009, their EPS jumped to $7.55 and last year, they made $9.91. Wall Street expects LZ to make $11.31 per share this year and $12.48 per share next year.

The stock closed Friday at $105.44 and Buffett is buying it all for $135. Two years ago, it was going for less than $24.

Posted by on March 14th, 2011 at 8:07 am


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