Buffett’s Deal Drought Ends With $11.6 Billion Alleghany Buy

  • New York insurer is “complementary” to Berkshire, analyst says
  • Buffett also deployed huge cash pile to amass Occidental stock

Warren Buffett

Photographer: Daniel Acker/Bloomberg

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Warren Buffett is back on his dealmaking roll thanks to a more volatile stock market and some very familiar assets.

His Berkshire Hathaway Inc. announced an $11.6 billion deal to buy Alleghany Corp. on Monday, on the heels of massive purchases of Occidental Petroleum Corp. common stock that gave it a roughly $7.2 billion stake in the oil giant. Buffett has been putting more of Berkshire’s $146.6 billion cash pile to work, aided by an S&P 500 Index that’s fallen nearly 6.4% this year through Friday.