As seen on WBIR, Knoxville’s NBC affiliate station.
Warren Buffett has a history of buying companies you’d never expect would capture his interest. His holding company, Berkshire Hathaway, has agreed to purchase a majority stake in Pilot Travel Centers over a six-year period. Is Mr. Buffett getting a good deal?
HOW WILL THIS ACQUISITION IMPACT PILOT AND KNOXVILLE?
Warren Buffett’s style of doing business is to buy healthy companies, for a good price, and keep successful leadership in place.
- Commitment to Knoxville: Buffett committed to keeping Pilot Flying J headquarters in Knoxville and maintaining leadership.
- Example: Clayton Homes
- Buffett purchased bought Clayton Homes for $1.7 billion in 2003.
- At the time, the company employed about 5,000 people. Now Clayton Homes has 16,000 employees and CEO Kevin Clayton has remained in charge.
- Access to Money: Virtually unlimited growth capital paving the way for Pilot Flying J to expand.
COULD THE UPCOMING FEDERAL TRIAL AFFECT THE DEAL’S TERMS?
- Pilot has already agreed to pay $92 million in a federal settlement.
- Buffett said he did his due diligence and is satisfied with what he is buying.
WARREN BUFFETT IS DESCRIBED AS A “VALUE INVESTOR” WHAT DOES THAT MEAN?
Bargain hunters: The essence of value investing is buying stocks at less than their intrinsic value.
Through his holding company he has purchased about 70 publicly and privately-owned stocks. Examples:
- Kraft Heinz
- Coca Cola
- American Express
- See’s Candy
YOU can buy Berkshire Hathaway shares:
- A Share Price ~$279,000 per share
- B Share Price ~$186 per share