Warren Buffett, the second wealthiest person here in this country, CEO of Hillshire Hathaway, seems to have the “Midas” touch when it comes to making billions of dollars of profit for himself, and his investment firm. At times, some of Buffett’s investment moves do not look favorable or even profitable. Buffett has a knack for seeing the light in dismal company situations. Today we look at one example, that fell upon Buffett “Midas” touch.
Iscar, Israeli Industrial Manufacturing Company
Berkshire purchased an 80% stake in Iscar for $4 billion dollars in 2006. This was the company’s first international investment. Seven years later in 2013, Hillshire bought out the remaining 20% for $2 billion dollars. To put in simple terms, Berkshire/Bonnett bought the remaining 20% for half of what Hillshire/Bonnett paid for the original 80$ purchase. In this example, Berkshire/Bonnett definitely came out on the winning side taking total control of this company.
Other Israeli Companies Hillshire Has Investments In
Hillshire/Bonnett other buyouts include eVolution Networks, developer of wireless energy savings software and Ray-Q Interconnect, an electronic components distributor. However, Buffett may have been the first to invest in Israeli companies, but you could say he has successfully shown the potential in the Israeli business and manufacturing community. So much so that Mark Cuban is part of a major group that has heavily invested in Percepto.This company is a new drone operation that will monitor and inspect huge windmills in the middle of nowhere.
As everyone knows, Warren Buffett’s forte is holding on to stocks for the long haul. Even with Buffett’s “Midas” touch, he recently has had investments such as Wells Fargo and IBM that did not go as well as Berkshire/Bonnett anticipated. These recent investments by Buffett are still too new to predict. However, if anyone can create profit from falling companies, Buffett is the one. After all, that is how he took control of Brookshire Hathaway in his early thirties, and at the same time made himself a millionaire.