Posted on 01/29/2005 1:54:33 PM PST by LibWhacker
Legendary investor Warren Buffett will earn about $645 million from the Procter & Gamble Co.'s purchase of Boston's Gillette Co.
Based on an initial purchase in 1989 of $600 million in Gillette stock by Buffet's Berkshire Hathaway holding company, the investment has seen a gain of more than $4.4 billion, not counting dividends. That works out to about a 14 percent compounded annual return, CNN reported Saturday.
Depending on how the calculations are made, P&G's $57 billion purchase price for Gillette is a 14 percent to 18 percent premium over the share price of Gillette stock, meaning an estimated profit of $645 million for Buffett's 96 million shares of Gillette.
He seemed pleased.
Over that time we've been happy with that investment, but I've got to tell you I'm happier today, Buffett told CNN/Money Magazine.
I only bought about $300 million of the stock back in 1989.
If the razors are stored inside a pyramid they will stay sharp forever. Buy stock in a pyramid.
The annoying thing is that Buffet is a liberal Dem, and he'll benefit not only from P&G's buyout of Gillette, but also from capital gains tax cuts and other tax cuts he opposed, as a result of President Bush's reelection.
Only in America
Noticed another of Buffet's companies, GEICO, making a lot of public advertisements.
He seemed pleased."
Yeah. No s**t.
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