Buffett Logs Huge Profit on Sale
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NEW YORK — One of the biggest beneficiaries of General Dynamics Corp.’s decision to sell its military aircraft division Wednesday is Nebraska investor Warren E. Buffett.
Buffett, sometimes known as “the sage of Omaha,” bought 4.35 million shares, or 15%, of the company in late July at an estimated $74 a share, or $322 million.
News of the sale of the division to Lockheed Corp. for $1.525 billion sent General Dynamics’ stock up $2.875 to close at $103.875 a share Wednesday, giving Buffett a paper profit of $130 million, or 40% in less than five months.
Buffett has said he is a long-term investor in General Dynamics and has handed over his voting rights to the company’s management.
Buffett’s investment umbrella group, Berkshire Hathaway Inc., the priciest stock on the New York Stock Exchange, rose $150 Wednesday to $11,350 a share.
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