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Stocks B / Berkshire Hathaway
|Subject: Re: Berkshire buys Heinz||Date: 2/15/2013 11:11 AM|
|Author: DrtThrwingMonkey||Number: 198661 of 226520|
He has negotiated before on a limited basis. For example:
“We agreed to purchase 35,464,337 shares of MidAmerican at $35.05 per share in 1999, a year in which its per-share earnings were $2.59. Why the odd figure of $35.05? I originally decided the business was worth $35.00 per share to Berkshire. Now, I’m a “one-price” guy (remember See’s?) and for several days the investment bankers representing MidAmerican had no luck in getting me to increase Berkshire’s offer. But, finally, they caught me in a moment of weakness, and I caved, telling them I would go to $35.05. With that, I explained, they could tell their client they had wrung the last nickel out of me.
This is a nice example of the Latin proverb, exceptio probat regulam.
Imagine Buffett saying
"I never increase my price."
"OK, well I did once. After a few days of constant harassment, and in a moment of weakness, I went from $37.00 to $37.05. But it hurt."
He can't say that any more. Well, maybe he can say, "3G ran the negotiations, it wasn't me." So maybe the record is still intact.
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