Once Called A 'Big Mistake,' Warren Buffett's Precision Castparts Acquisition Sees A $2 Billion Rebound, Narrowing Berkshire Hathaway's Losses
Benzinga (Mon, 31-Mar 3:16 AM)
Warren Buffett‘s Berkshire Hathaway Inc. (NYSE:BRK) (NYSE:BRK) revealed that Precision Castparts, an aerospace parts manufacturer it acquired in 2016, has experienced close to a $2 billion increase in value.
What Happened: The Oracle of Omaha had previously labeled the acquisition a “big mistake,” leading Berkshire to take approximately $10 billion writedown in 2021. Buffett admitted that he “paid too much” for the company when Berkshire acquired it for $37 billion in 2016, leading to significant job cuts. The recovery has brought Precision Castparts’ value to about $34 billion, nearing the break-even point for the deal, reported the Financial Times.
The aerospace industry’s resurgence after the 2020 pandemic and increased production from Boeing (NYSE:BA), a key client of Precision Castparts, are credited with the recovery. Deloitte ...
