Nucor shares up 7.7% premarket after Berkshire Hathaway raises stake in company by 14.9%
Nucor Corporation (NUE) shares have seen a significant increase in premarket trading, rising by 7.7% after Berkshire Hathaway disclosed a substantial increase in its stake in the steelmaker. The Omaha, Nebraska-based conglomerate, led by Warren Buffett, has raised its position in Nucor by 14.9% [1].
The latest quarterly filings with the Securities and Exchange Commission (SEC) reveal that Berkshire Hathaway now holds approximately 6.6 million shares in Nucor, up from its previous holding. This investment, valued at around $857 million at the end of the second quarter, signifies a strategic move by Berkshire to bolster its portfolio in the industrial sector [1].
Nucor's stock price has been on the rise, with the company's shares experiencing a 6% gain in extended after-hours trading following the disclosure of Berkshire's increased stake. This move by Berkshire Hathaway, known for its long-term investment strategy, underscores confidence in Nucor's ability to generate value for shareholders [1].
Berkshire Hathaway's investment in Nucor is part of a broader trend of strategic adjustments to its portfolio. The company has also made significant additions to its holdings in UnitedHealth Group, Lennar, and D.R. Horton, reflecting a disciplined approach to capital allocation [3]. These investments align with Berkshire's focus on companies with durable competitive advantages and predictable cash flows.
For investors, the key takeaway is Berkshire Hathaway's continued commitment to identifying undervalued opportunities across various sectors. The upcoming Q3 13F filing will provide further insights into Berkshire Hathaway's investment strategy and the potential impact of these acquisitions on the company's overall performance [3].
References:
[1] https://finance.yahoo.com/news/warren-buffetts-company-reveals-investments-210040642.html
[2] https://www.financialexpress.com/market/berkshire-hathaway-unveils-new-stakes-in-unitedhealth-nucor-and-homebuildersnbsp-3947016/
[3] https://www.ainvest.com/news/berkshire-hathaway-q2-portfolio-stakes-unitedhealth-nucor-trimmed-apple-holding-2508/
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