In Business This Week
BUFFETT: PLAYING THE GAME AGAIN
Warren Buffett is back. A year after taking a hiatus from investing to resurrect scandal-plagued Salomon Brothers, Buffett is buying up stakes. On Aug. 12, Wells Fargo announced that Buffett's Berkshire Hathaway has purchased an additional 613,500 shares of the San Francisco bank, boosting his stake to 10.75%. The deal follows Buffett's July purchase of 15% of General Dynamics.
Buffett paid $66 each for his Wells shares--but he could have paid much more. The Federal Reserve approved his request to acquire more of Wells Fargo a year ago, when shares were trading as high as $98. But Buffett, caught up in the Salomon problems, delayed the deal. The waiting period saved the Omaha billionaire some $20 million.EDITED BY DEIDRE A. DEPKE