Even Warren is getting in on the act.
First Gates, then Allen, and now Buffett. That's well over $100 billion in net worth. And they're all invested in cable. Do they know something?
Buffett Takes 8% Stake in
TCA Cable
Tyler, Texas -- Legendary investor Warren
Buffett has purchased more than 4 million shares
of Tyler, Texas-based MSO TCA Cable TV
Inc.
Buffett's stake in the company amounts to 8.1
percent of its outstanding shares. Buffett,
chairman of Berkshire Hathaway Inc., announced
his holdings in the company in a 13-G filing with
the U.S. Securities and Exchange Commission
Wednesday.
News of the Buffett investment lifted TCA
shares by 17 percent last Wednesday, or $6.375,
and they closed that day at $43.125 apiece.
TCA's shares closed Thursday at
Based on that stock price, Buffett's shares are
worth about $172.5 million.
The stock is trading near its 52-week high of
$44.12.
Murray Arenson, an analyst for Dallas-based
Hoak, Breedlove, Wesneski & Co., said the
Buffett investment is a further validation of
TCA's business plan.
The TCA investment may be the Nebraskan's
first entrance into the industry.
Arenson said that according to TCA, Buffett
didn't get involved in the cable industry because
he was uncomfortable with the financial structure
of the business -- characterized by class-A and
class-B shares, supervoting shares and excessive
debt levels. However, it appears that TCA has
changed his mind about the sector.
Buffett becomes TCA's fourth-largest
shareholder.
- 2/18/99 |
