N@N

Berkshire Hathaway, Wesco Financial, Coca-Cola, Procter & Gamble and Wells Fargo

^{Published on 2010-08-30 14:20:48 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Berkshire Hathaway Inc. (NYSE: [ BRK.B ]), Wesco Financial Corp. (NYSE: [ WSC ]), Coca-Cola (NYSE: [ KO ]), Procter & Gamble (NYSE: [ PG ]), and Wells Fargo (NYSE: [ WFC ]).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]

Here are highlights from Fridaya™s Analyst Blog:

Buffett Gets 20% of Mungera™s Wesco

Yesterday, Warren Buffett, the chairman and CEO of Berkshire Hathaway Inc. (NYSE: [ BRK.B ]) announced its intention to buy 20% of Wesco Financial Corp. (NYSE: [ WSC ]), a company run and controlled by Charles T. Munger.

Following approval by shareholdersa™ of both the companies, the Wesco deal will be financed by a combination of cash and Class-B shares (Buffett uses Class-B shares for acquisitions) based on the book value to the acquiring company. As per book value of $353 per share at the end of June 30, 2010, the deal will cost $514 million to Buffett.

Pasadena, California-based Wesco is 80.1% owned by Blue Chip Stamps (Blue Chip), a wholly-owned subsidiary of Berkshire since 1973. Thus, Wesco and its subsidiaries are controlled by Blue Chip and Berkshire. All of these companies may also be deemed to be under the control of Buffett, who owns of 24.3% of Wescoa™s stock.

Munger is also the vice chairman of Berkshire and consults with Buffett on Wescoa™s investment decisions, major capital allocations and the selection of chief executives to head each of its operating businesses.

Wescoa™s activities fall into three business segments a" insurance, furniture rental and industrial. The insurance segment consists of the operations of Wesco-Financial Insurance Co. and Kansas Bankers Surety Co. The furniture rental segment consists of the operations of CORT Business Services Corp. The industrial segment comprises Precision Steela™s service center and industrial supply operations. Wesco also holds shares in some of the same companies as Berkshire, like Coca-Cola (NYSE: [ KO ]), Procter & Gamble (NYSE: [ PG ]), and Wells Fargo (NYSE: [ WFC ]).

Wesco continues to have a strong consolidated balance sheet, with high liquidity and relatively little debt. Its equity investments are in strong, well-known companies. Wesco reported a 1.8% year-over-year increase in 2009 revenues to reach $813.3 million.

Buffett intends to convert Wesco into a wholly-owned subsidiary of Berkshire, to deploy enormous cash of approximately $28 billion at Berkshire and also to simplify operations at Wesco. Besides Munger is already 86 and would not carry on with the role of its chairman for long.

Berkshire houses a diverse array of over 80 businesses which are categorized into a" Insurance, Regulated Utility, Manufacturing, Service & Retail and Finance & Financial Products. Some of the companies, which run these businesses are 100% owned, some are owned up to 80% while other positions merely involves big blocks of stocks.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].

Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.

Follow us on Twitter: [ http://twitter.com/zacksresearch ]

Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.