Berkshire Hathaway Breaks $166,000

It’s a quiet morning so far for our Buy List and the broader market. The S&P 500 is currently up just one point.

Warren Buffett was in the news a lot this weekend as Berkshire Hathaway ($BRKA) held its annual conference. I see that BRKA is currently the top-performer today in the S&P 100. The shares got over $166,000. In 1990, the stock was worth a mere $5,500. When the tech bubble peaked in March 2000, BRKA was worth 30 times the S&P 500. Now it’s up to 103 times the index.

BMC Software ($BMC) has agreed to be sold for $6.6 billion. I’m surprised that the premium is so small. The stock closed Friday at $45.42 and the deal price is $46.25. I think the buyout group, led by Bain Capital and Golden Gate Capital, is getting a decent value. I would have expected this move to have some impact on Oracle ($ORCL) and CA Technology ($CA) but the market doesn’t seem terribly impressed.

Alex Sherman at Bloomberg has an interesting article on the different strategies of Dish Network ($DISH) and DirecTV ($DTV). Dish is moving in the direction of wireless content with their giant purchase of Sprint Nextel, while DTV is sticking with satellite-TV. I’m not a fan of Sprint and I think Dish made its purchase from a position of weakness, not strength.

Posted by on May 6th, 2013 at 10:04 am


The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.