Warren Buffett's Berkshire Hathaway perfectly timed an out-of-left-field investment
CNN
Sometimes in investing, a little luck goes a long way. Just ask Warren Buffett. The Oracle of Omaha is set to make a handsome profit from a new investment in video game maker Activision Blizzard that Berkshire Hathaway made during the quarter before Microsoft announced its plans to buy it.
According to a filing late Monday with the Securities and Exchange Commission, Berkshire Hathaway (BRKB) bought nearly 14.7 million shares of Activision Blizzard (ATVI) in the fourth quarter of 2021. The stake was worth about $975 million at the time, an average price of $66.53 a share.
But Activision Blizzard is now trading at about $81.50 a share following Microsoft's (MSFT) nearly $70 billion deal, announced last month. That means that Berkshire's stake is now worth about $1.2 billion, which works out to a quick 22.5% gain.
Millions of Americans have taken to the skies, hit the road, fired up the barbecue grill and jumped into the pool this weekend to celebrate the start of summer 2024. Analysts are expecting the Memorial Day weekend to usher in yet another summer of strong consumer spending on travel and other leisure activities.