Buffett is Buying!!!!!!
Shares of Target gapped open this morning and traded up to a 52-week high as breathless traders piggy-backed a filing made by Berkshire Hathaway reporting a large stake in the company.
But investment legend Warren Buffett probably is not behind the purchases. The 2004 Berkshire annual report explains that GEICO’s Lou Simpson, an astute investor in his own right, manages approximately $3 billion with Buffet’s blessing. And it appears he has the authority or wherewithal to establish positions up to the $300 million mark…
the Oracle of Omaha opines…
Even then, it is not typically I who makes buying decisions. Lou Simpson manages about $2.5 billion in equities that are held by GEICO, and it is his transactions that Berkshire is usually reporting. Customarily his purchases are in the $200-$300 million range and are in companies that are smaller than the ones I focus on.
You may be surprised to learn that Lou does not necessarily inform me about what he is doing. When Charlie and I assign responsibility , we truly hand over the baton-and give it to Lou just like we do to our operating managers. Therefore I typically learn of Lou’s transactions about 10 days after the end of each month. Sometimes, it should be added, I silently disagree with his decisions. But he is usually right.
Given that the position is smack dab in the middle of Simpson’s sweet spot, it is likely investors are chasing Lou’s pick not Warren’s.
Wonder if Warren likes this one.
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