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Stocks B / Berkshire Hathaway


Subject:  Re: Maystery purchase Date:  11/4/2018  12:10 PM
Author:  ppant Number:  239437 of 243205

I suspect the recent BAC purchase is is a Buffett cash substitute move over the short term and not a longer term commitment.

He did the same thing with Exxon in 2013 - in and out in less than 2 years. Munger described it thus :

You know why Warren bought Exxon? As a cash substitute. He would have never done that in the old days. We had a lot of cash and we thought Exxon was better than cash over the short-term. That's a different kind of thinking than the way Warren came up.

if not this I would agree it just doesn't make much sense as a long term commitment of that chunk of capital in a so-so business.

I think the reason he has not committed this capital to buybacks is because he can get out of the position very quickly if he needs to free capital for a deal.
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