Buffett to Reduce Successor’s Cash Hoard With Precision Deal

Why Warren Buffett Bought Precision Castparts for $37.2B

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Warren Buffett’s eventual successor at Berkshire Hathaway Inc. will have one more industrial company to supervise, and a lot less cash to worry about, under the billionaire’s plan to buy Precision Castparts Corp.

That’s the sort of trade-off that the 84-year-old may be looking for as he prepares his company for a new generation of leadership and seeks to shrink a cash pile that stood at $66.6 billion on June 30. Berkshire has agreed to buy Precision Castparts in a deal valued at $37.2 billion, according to a statementBloomberg Terminal Monday.