Seeking Alpha

Buffett more than doubles stake in USG

  • Boosting his bet on the building industry, Warren Buffett (BRK.A, BRK.B) discloses a 30.5% stake in USG. He now owns 43.4M shares vs. about 17M at last report.
  • USG +2.2% premarket
  • SEC Form 13D
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Comments (5)
  • pman6
    , contributor
    Comments (270) | Send Message
     
    buffett hopes for a construction boom.

     

    many homes built in the 1950's are being torn down in my area.
    2 Jan, 08:42 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (792) | Send Message
     
    Well that's a way to use Berkshire' cash. The stockmarket (as I've said before) is easier to access than acheiving a full acquisition.

     

    Long brk.a
    2 Jan, 10:46 AM Reply Like
  • mscott9
    , contributor
    Comment (1) | Send Message
     
    did he buy USG common stock on the open market or are these related to the preferred shares he bought a couple years back?
    2 Jan, 11:37 AM Reply Like
  • psychological-dividends
    , contributor
    Comments (792) | Send Message
     
    I think you're right he converted notes.
    2 Jan, 11:48 AM Reply Like
  • Andrew Noland
    , contributor
    Comments (108) | Send Message
     
    BRK owned about $280 million of convertible notes, callable by the company. By converting, Berkshire received 87 shares of USG stock per $1,000 of convertible notes. 87 shares of stock is worth about $2,500 while the notes would have been called at 105%, or $1,050. This was a no brainer.
    2 Jan, 12:01 PM Reply Like
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