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Strategies & Market Trends : Value Investing
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To: Paul Senior who wrote (55477)6/16/2015 12:06:56 PM
From: E_K_S  Read Replies (2) of 78673
 
Paul, I was trying to see an argument why Buffet found PG to be a compelling value BUY at the current price. Bruwin at least proposed one view that I did not even think of.

Now that I remember the earlier deal that Buffet did to get the Duracell division, Buffet saw some hidden assets that could bring significant value and cash. It's the tax free exchange that was the kicker.



Could he be using some of his 4% PG stock holdings to get other PG assets (in a similar tax free exchange)? I could see that being added to his Hunts deal. So, value to Buffet at least for these transactions is not really the cost of capital but the cash and tax free exchange of assets that makes the deal work.

EKS
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