Buffett builds 9.8% stake in American Express
Wednesday 15 February 1995
"Mr Buffett is one of the market's most respected and successful long- term investors. We are delighted with the vote of confidence in American Express that the Berkshire Hathaway share purchases represent," American Express enthused yesterday.
Mr Buffett's spokesperson in Omaha, Nebraska, was unwilling to supply any further information about the purchase or Berkshire Hathaway or Mr Buffett's intentions
Yesterday's statement by American Express confirmed that Berkshire Hathaway had built its stake by converting $300m worth of preferred stock acquired in 1991 into 14 million American Express shares in August last year.
By the end of the year the stake had risen to 27.7 million shares, and further purchases this year had increased the holding to 48.5 million by Monday evening.
American Express is in a growth phase, and the company recently reported record earnings and revenue growth in calendar 1994.
Mr Buffett is not thought to have asked for a seat on the board but it seems likely he will be asked to join shortly.
Berkshire Hathaway's investments include stakes in Coca-Cola, Gillette, the Washington Post and other media groups, and Salomon Inc the New York investment house.
Mr Buffett is the author of a recent book on investment policy which is highly critical of short-term investment policy and contemporary investment theories. He is a long-term investor with a relatively a conservative investment policy.
"The problem with over-diversification is if you have a harem of 40 women you never get to know any of them very well," he is once supposed to have said. But his personal wealth was estimated recently by Forbes Magazine at $9.2bn, second only to Bill Gates of Microsoft in the list of the 400 richest Americans.
World's most lethal spider found under a bunch of bananas
Rumours that the star wants to move on to pastures new
Comedian says he 'never laughed as hard as I have writing with Rik'
- 1 Jack the Ripper: Scientists who claims to have identified notorious killer has 'made serious DNA error'
- 2 Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
- 3 Star Wars memorabilia called a 'bit of plastic' by Antiques Roadshow's Fiona Bruce valued at £50,000
- 4 Meet Thea, Norway's 12-year-old child bride
- 5 Russell Brand might seem like a sexy revolutionary worth getting behind, but he will only fail his fans
Ebola outbreak: What is bushmeat – and is it to blame for the disease that has killed thousands?
Oscar Pistorius sentencing: Olympic star must serve 10 years, prosecutor urges
Isis fighters 'crucify' 17-year-old boy in Syria
Kentucky gang rape: 15-year-old boy left in critical condition after sexual attack by group at party
Oscar Pistorius sentence: Athlete's wealth and notoriety provoke an overdue debate on South African prisons
Cameron is warned 'no possibility' of UK reducing immigration and that bid to bring in quota on migrant workers would be illegal
Sorry Judy Finnigan – Ched Evans is no less sickening than an alleyway rapist
Residents should throw a street party and mix with immigrant neighbours, councils told
Workers 'could be forced to pay £5 a week' to get benefits
Russell Brand threatened with arrest after filming outside Fox News headquarters
Amal Alamuddin calls for the return of the Elgin Marbles from Britain: 'Injustice has persisted for too long'
iJobs Money & Business
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£27000 - £32000 Per Annum: Clearwater People Solutions Ltd: Our large charity ...
£50000 - £55000 per annum + bonus + benefits: Ashdown Group: IT Relationship M...
Highly Attractive Salary : Austen Lloyd: NOTTINGHAM - BRILLIANT FIRM - You wil...