Buffett is too mean? Private equity company jiehu

category:Finance
 Buffett is too mean? Private equity company jiehu


Recommended reading: behind Buffetts plan to invest in China: US stocks are at a terrible high

Apollos latest offer exceeds Buffetts and is considered better by us technical data. Buffett did not intend to offer a higher price, and gave up the acquisition.

American technology data is a global distributor of technology products and services, providing small companies with technology software and hardware owned by large technology companies, with revenue of $37 billion last year. About 16% of the companys sales come from apple, while Cisco and HP each account for about 11%.

The market value of us technical data is currently US $5.2 billion, which is at the highest level in history. After Apollos first offer was made public, its share price began to rise.

Judging from Buffetts exit from the M & A, he attaches great importance to the degree of premium in the M & A. the difference between his quotation of nearly 5 billion US dollars and the final M & a price of 5.14 billion US dollars is less than 200 million US dollars. Now the market value of the company has exceeded the M & a price. On November 29, after the media exposed Buffetts participation in M & A, the US technical data rose 12.32%.

Buffett pays attention to value investment, even if the target is good, he is against paying high premium for the investment target. In fact, some people even judge him as stingy. From his comments in recent years, we can see his investment philosophy: at present, the premium of direct acquisition companies is too high, because there is too much liquidity in the market, especially the competition from private equity companies and other participants, pushing the price to the extreme.

Bank of America called Todd combs, investment manager at Berkshire Hathaway, when it noticed the terms of Apollos deal with technical data. On November 20, Buffett decided that he was willing to buy the company for $140 a share, surpassing Apollos $130 a share offer.

Two days later, Berkshire vice chairman Abel met with us technical data management. On the evening of November 22, the Technology Data Committee approved Berkshires offer, saying it was a better deal than the original Apollo deal. But on the 25th, Apollo raised his offer to $145 a share, and Buffett withdrew from the bidding war.

In just a few days, from deciding to invest to quitting bidding, Buffetts decision is fast, accurate and ruthless.

It is understood that US technical data is one of the largest technical distributors in the world. They help hundreds of companies, including HP, apple, Cisco, and Microsoft, bring their products to market and provide a wide range of technical and business support services. According to its website information, American technical data will serve its customers through certification, training and other ways, and help them to configure, install and provide financing services. Many hardware devices and software applications used in daily life are entered into the market through its logistics center. In short, its a small service-oriented company that has grown up with large technology companies. In recent years, Buffett and his deputy have continued to pay attention to the technology industry. In the current development of science and technology companies, when large-scale science and technology stocks become the target of capital chasing, small service-oriented companies become the target of Buffetts consideration of M & A. At the same time, the companys largest product source is apple, which Buffett holds the most shares, reflecting its confidence in apple. Source: responsible editor of China Fund News: Zhong Qiming, nf5619

It is understood that US technical data is one of the largest technical distributors in the world. They help hundreds of companies, including HP, apple, Cisco, and Microsoft, bring their products to market and provide a wide range of technical and business support services.

According to its website information, American technical data will serve its customers through certification, training and other ways, and help them to configure, install and provide financing services. Many hardware devices and software applications used in daily life are entered into the market through its logistics center. In short, its a small service-oriented company that has grown up with large technology companies.

In recent years, Buffett and his deputy have continued to pay attention to the technology industry. In the current development of science and technology companies, when large-scale science and technology stocks become the target of capital chasing, small service-oriented companies become the target of Buffetts consideration of M & A. At the same time, the companys largest product source is apple, which Buffett holds the most shares, reflecting its confidence in apple.