Berkshire Hathaway to acquire Alleghany in mega bucks deal

By Scoop
March 24, 2022 · less than 3 min read

The wily wolf of wall street is back at it again.

Splashing the cash

It’s not every day you get to throw around nearly $12 billion on an investment. Then again, we’re not Warren Buffett. The cunning operator has built a reputation over decades for making prudent investments at the right time, taking a loyal legion of investors with him. So Berkshire Hathaway’s latest multi-billion-dollar acquisition – its largest since 2016 – is sure to set the gossip columns alight.

Berkshire has always had a high level of exposure to the insurance industry, so the acquisition of this insurance firm isn’t too much of a surprise. Ultimately, Buffett has almost always been a prudent investor first and foremost, so while the sums may be big, the risk potential for this acquisition is quite likely a calculated maneuver. He’s called the Oracle of Omaha for a reason, right?

We meet again

Interestingly, Buffett also has previous with Alleghany’s CEO, Joe Brandon. Brandon is also the CEO of General Re – also owned by Berkshire. As they always say: it’s all about who you know, right?

In any case, it’s certainly interesting to see how Buffett leverages his connections to find the right offerings. For a long time now, he has been bemoaning the lack of availability of good investments. The pandemic certainly has played a role in this, so no doubt the ending of Buffett’s investing drought will be watched with eager eyes in the coming weeks.

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