Berkshire Hathaway (BRK) Adds Its USG Corporation (USG) Stake

Contributed by mm | October 9, 2006 12:47 AM PST

Buffett is buying USG again, but do you have the gut to follow Buffett to a falling knife?

From CNN Money:

Billionaire investor Warren Buffett's Berkshire Hathaway Inc. has increased its stake in USG Corp. to 19 percent, lifting the building products company's stock nearly 3 percent after the bell closed Friday.

Berkshire (BRK.A) acquired another 1.1 million shares, according to a filing with the Securities and Exchange Commission on Friday. Chicago-based USG (USG), whose key products include gypsum wallboard, emerged from bankruptcy protection in June.

Berkshire bought the shares through open market purchases in August and October for about $51.2 million and now owns almost 17.1 million shares in the building products maker, according to the filing.

In August, USG said it raised gross proceeds of $1.8 billion from a stock rights offering. At that time, Berkshire increased its ownership stake in USG to 15 percent, acquiring nearly 7 million shares in connection with its role as backstop purchaser for the rights offering.

What do you think of this post? Be the first to share your opinions.

Enjoy the latest personal finance news and commentary at PFBlog Network.

Similar Posts

Stocks With Dividend Growth Potentials (GE, MSFT, NI) (October 10, 2006)
Vanderlee mentioned the following stocks with high potential for dividend growth: General Electric Co. (GE) NiSource Inc. (NI) Microsoft Corp. (MSFT)

Silver Linings Of Housing Industry (DHI, PHM, CTX, LEN, KBH, MDC, MTH) (October 10, 2006)
Morningstar's analyst Eric Landry is making a case why housing industry's economics is attractive. The following stocks are mentioned in the article: DR Horton (DHI) Pulte (PHM) Centex (CTX) Lennar (LEN) KB Home (KBH) MDC Holdings (MDC) Meritage (MTH)

China's ICBC On Track To Complete The Largest IPO, Ever (October 9, 2006)
While the IPO will surely be a success, I don't think high of the bank. I normally bank with China Merchant Bank, also a public traded bank in China. ICBC is just too big to be successful.

What Is Day Trading? (October 8, 2006)
Day traders rapidly buy and sell stocks throughout the day in the hope that their stocks will continue climbing or falling in value for the seconds to minutes they own the stock, allowing them to lock in quick profits. Day trading is extremely risky and ...

Read More ... All Other Posts In The Same Category

04/29/07 | Is It The Right Time for Mid-Cap? | (2)

04/22/07 | Vonage: IPO to Bankruptcy in One Year?

04/22/07 | Foreign Markets Provide Better Diversifaction Now

03/03/07 | Finance Market Commentary, The UK Flavor

02/13/07 | 10 Tips for Value Investors | (1)

02/09/07 | Managed-Futures Funds Available To Small Investors Soon

02/06/07 | What Is Mortgage REIT? | (1)

02/01/07 | Exxon Mobile Is Minting Money

01/29/07 | The China Stock Market Is Red Hot

12/14/06 | Common Misunderstandings of Stock Market

11/28/06 | Bank of America Surpassed Citigroup in Market Cap