Like a bear awakening after a long winter’s hibernation, Warren Buffett has emerged from his cave to make some huge deals in recent weeks. That’s a clear sign to investors that despite geopolitical turmoil, rising inflation, hawkish central banks, and market volatility, companies are still looking ahead to their future and putting the types of plans in place that make them great companies, contends an article in Yahoo! Finance.
Buffet announced this week that Berkshire Hathaway will purchase insurance company Alleghany for $11.6 billion, broadening his insurance empire beyond his holdings of Geico and General Reinsurance Corporation. Buffett called Berkshire “the perfect home for Alleghany,” adding that he’d been watching the company closely for 60 years. In 2021, Alleghany brought in over $12 billion in sales and $1.1 billion in net earnings. Its shares shot up 25% when news of the sale went public.
In addition to that major purchase, Buffett also spent almost $1 billion to buy another 18.1 million shares of Occidental Petroleum, on top of the $6 billion he spent only weeks prior. That puts his stake in Occidental at nearly 14.6%, giving him a leg up in the energy sector as crude oil prices skyrocket in the wake of Russia’s invasion of Ukraine.