Proudly sponsored by

Berkshire adds tech IPO to ways it will deploy mountain of cash

In the latest expansion of Warren Buffett’s playbook.
Image: Bloomberg

Berkshire Hathaway is buying into a software company’s initial public offering in the latest expansion of Warren Buffett’s playbook.

Berkshire and Salesforce Ventures, an arm of Salesforce.com, will each buy $250 million of shares of Snowflake at its IPO price, according to a filing Tuesday. Berkshire has also agreed to buy 4 million shares in a secondary transaction, according to the filing.

Buffett for decades shied away from technology-company investments, preferring industries he knew better, but has relaxed that stance in recent years. He’s also been more open to share buybacks and foreign investments as he seeks ways to deploy a cash pile that ended June at almost $150 billion.

A tech IPO isn’t totally unprecedented for Berkshire. In 2018, the company invested in the offering of StoneCo, a fintech that operates in Brazil. Those shares have more than doubled from the offering price.

© 2020 Bloomberg

Get full access to Moneyweb's financial insights and support quality journalism.

Only R63 per month or R630 per year. You can cancel at any time.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: