Why a $530M Verizon Stake Make Sense for Berkshire

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May 16 (Bloomberg) -- Bloomberg’s Noah Buhayar reports on Berkshire Hathaway’s disclosure of a $530 million stake in Verizon Communications, who is responsible for the stake and the company trimming its position in General Motors. He speaks on Bloomberg Television’s “In The Loop.”

General motors.

I want to bring in noah brier.

Do we know who made this decision?

We do not know, and that is always the mystery when berkshire puts out these filings -- we get a list of the stocks, the size of the state, and not much more.

Why would this make sense?

There are a couple of things.

We spoke with some analysts and they pleaded a deal with vodafone.

They are now the sole owner of verizon wireless.

Part of it is there is room for growth in the u.s. for mobile phones even though most people here, or a lot of people here already have smartphones.

You cannot imagine that warren buffett will be making a like this.

It is out of his purview.

The telltale sign is the size of the position, $530 million.

What warren buffett has been saying is he really focuses on the largest investments, the multibillion-dollar deals, whereas his deputies have smaller portfolios.

For them, it is more reasonable to be taking a $500 million position.

One of their big bats paid off with -- big bats paid off with -- big bets paid off with directv para it has certainly done quite well for them.

What about general motors?

They trimmed it by about 25%. obviously, everyone is aware of the recall issues gm is having.

We'll have to see what happens with that position.

Noah, thank you for joining us.

Coming up, and media like "-- print media, like "the new york times" could use some buzz.

We will look at how they can compete.

Eliot spitzer is back in the news.

This time there is not even a hint of scandal.

This text has been automatically generated. It may not be 100% accurate.


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