Meet Warren Buffett Successor Greg Abel’s Newest Investment: Bending Spoons. Should Investors Follow Suit and Buy the Stock?
Warren Buffett has historically been gun-shy about investing in technology stocks. And while he has made notable investments in the sector in recent years, including Apple and Alphabet, it was never a focus area for him when he ran Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB). However, with Greg Abel now in charge, the new CEO appears to be more interested in investing in the sector than his predecessor.
Abel’s latest big bet is on recent tech IPO Bending Spoons (NASDAQ: BSP). Berkshire bought around $600 million worth of shares of the Italian company when it IPO’d at $29 in July. The conglomerate just invested another $330 million in the stock through a private placement this month. It is buying 10 million shares at $33 per share, which was an approximately 13% discount to the stock’s price the day before the announcement.
So what exactly is Bending Spoons, and should investors be scooping up shares in this technology stock too?
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.