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.
Wellcome Image Awards: The most striking images from the world of science, including breast cancer cells under chemical attack and a photographer’s own kidney stone
Missing Malaysia Airlines plane: 'All passengers' under investigation, police say
Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
Oscar Pistorius murder trial: Athlete repeatedly sick as court hears 'graphic details' of Reeva Steenkamp's post-mortem
How climate change helped Genghis Khan: Scientists believe a sudden period of warmer weather allowed the Mongols to invade with such success
Britain's top vet sparks controversy with call for ban on slashing animals' throats in 'ritual' slaughters for halal and kosher meat products
Poor 'live like animals' says Boris's privately educated sister after going on 'poverty safari'
Exclusive: Impact of immigrants on British workers ‘negligible’
Vince Cable: Teachers 'know absolutely nothing' about the world of work
Ukraine crisis: Russia pledges to 'retaliate against sanctions' as Ukrainian president says Crimea vote will not be recognised
The quiet diplomat: Catherine Ashton - recognised and admired in all the world’s troubled countries, yet ridiculed at home
- 1 Pakistan vs Paul Smith: Sandal-wearers bemused by famed British designer's attempts to sell traditional Peshawari chappal-style shoes for the distinctly untraditional sum of £300
- 2 Family forced to flee home after discovering 'terrifying' nest of spiders in bananas
- 3 Grace Dent: Who cares if she spells it Barraco Barner? Gemma Worrall is more employable than some bookish arts graduate
- 4 Russell Crowe's Noah banned in three Arab countries before worldwide premiere
- 5 Bob Crow death: 'Admired by his members, feared by employers' - Tributes pour in for RMT union leader and 'working class hero' Bob Crow
iJobs Money & Business
£1000 per month: Inspiring Interns: The company works with Tier 1 FTSE 100 Ban...
£35000 - £60000 per annum + Bonus + Benefits: Pro-Recruitment Group: You must ...
£60000 - £80000 per annum + BONUS + BENEFITS: Harrington Starr: A top, City ba...
VOLUNTARY ONLY - EXPENSES REIMBURSED : Reach Volunteering: Fantastic opportuni...