Berkshire Posts 25% Intel Gain by Shunning Buy-and-Hold

Berkshire Hathaway Inc. (A) locked in a gain on its Intel Corp. (INTC) bet by selling its stake less than a year after making the investment, shunning the buy-and-hold strategy favored by Chairman Warren Buffett.

Berkshire Posts 25% Intel Gain by Shunning Buy-and-Hold 77783828

Berkshire’s Geico unit accumulated 11.5 million shares of Santa Clara, California-based Intel in the second half of 2011 for an average price of about $22 each, according to National Association of Insurance Commissioners data compiled by Bloomberg. Buffett’s firm sold the stake in the world’s largest semiconductor maker for an average price of $27.25 this year through May 8, netting about $60 million in profit.

The holding period is short for Omaha, Nebraska-based Berkshire, which Buffett built through acquisitions and by accumulating the biggest stakes in companies such as American Express Co. The billionaire has been handing more responsibility over the $86.2 billion stock portfolio (2FA) to his deputies, Ted Weschler and Todd Combs, as part of a succession plan. The back- up stock pickers are responsible for Berkshire’s smaller holdings, while Buffett manages larger stakes.

“Warren has always had an opportunistic arbitrage appetite, and the new investors share some of that,” Tom Russo, partner at Berkshire investor Gardner Russo & Gardner, said in a phone interview. The Intel trade reflects an “old and more traditional” style of value investing that relies on buying attractively priced stocks and selling when shares rise to a target, he said.

http://www.businessweek.com/news/2012-09-14/berkshire-posts-25-percent-intel-gain-by-shunning-buy-and-hold

Berkshire Posts 25% Intel Gain by Shunning Buy-and-Hold

Berkshire Posts 25% Intel Gain by Shunning Buy-and-Hold

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