Even Warren Buffett’s smaller deals are worth following, but now he's made the biggest buy of his career. Buffett's investment vehicle, Berkshire Hathaway, said on Monday that it agreed to buy Precision Castparts, which furnishes parts such as fasteners and turbine blades to aircraft makers, for about $32 billion in cash. It's Berkshire’s largest takeover ever.
The timing isn't really a surprise, since Berkshire has cash burning a hole in its pocket right now. Buffett has said he likes to have a cushion of $20 billion at all times, but Berkshire’s cash on hand totaled nearly $67 billion at the end of the second quarter.
The total cost of the transaction is $37.2 billion, which already looks like a steal for Buffett. Precision closed at $193.88 a share on Friday, but it was up 19 percent after the deal was announced on Monday morning.
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