SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Value Investing
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Graham Osborn who wrote (55476)6/16/2015 12:00:41 PM
From: E_K_S  Read Replies (1) of 78673
 
How would you adjust? Use a normalized 10 year rate? Buffet owns a large position so he must find some metrics he likes. I do see that PG has recently raised some cash selling off some assets.

Buffet did do one of his better PG asset acquisition in late 2013 by buying Duracell from P&G.

Warren Buffett to buy Duracell from Procter & Gamble
It was not the assets but how he transacted it. . . w/ a tax free exchange. He negotiated with P&G to trade some of his P&G shares for the Duracell division. Brilliant!

The deal terms are a bit complex: P&G has agreed to pump about $1.7 billion in cash into the Duracell company at closing, and in exchange, will receive about $4.7 billion in P&G stock currently held by Berkshire Hathaway.
He got an excellent revenue stream FCF generator and $1.7Bln in cash (very important to Buffet) in a tax free exchange. I suspect that cash gets used in one of his other companies and/or peeled off to Buy some cheap and/or distressed assets.

EKS
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News