According to Berkshire Hathaway's 1996 Annual Report, the corporation owned 30,156,600 shares with a cost basis of $1,265.3 million. That works out to approximately $41.96 a share. Of course, Berkshire could have bought (or sold, though selling seems unlikely) MCD shares since the last annual report.
(see berkshirehathaway.com
Interestingly, John Train's book regarding Warren Buffett, Midas Touch (1987), states: "When the first announcement appears of a large Buffett purchase of a security, there is usually a 'window' in which others can follow at much the same price. Often, however, investors assume--even investors who should know better--that at last Buffett has lost his grip, and that this time it is not worth paying attention to what he is doing."
The price right now, of course, isn't terribly much higher than $42, considering the market's strength so far in 1997. Train also notes, by the way: "A perfect reaction to your inquiry about a Buffett stock among your Wall Street friends would be 'It seems cheap, but I can't see it doing anything for at least six months. It's dead.' If you hear that, you may be on the right track." |
