Buffett Bags an iPIG Pick

By Chuck Saletta – May 30, 2013 at 5:45PM

NYSE: BRK.A

Berkshire Hathaway

Market Cap

$880B

Today's Change

(0.14%) $842.00

Current Price

$612,100.00

Price as of May 8, 2024, 4:00 p.m. ET

What happens next for the target company's shareholders when the world's greatest investor decides to buy out a company for cash?

Warren Buffett's Berkshire Hathaway (BRK.A 0.14%) (BRK.B 0.06%) announced yesterday that it's buying Nevada Electric generator NV Energy (NYSE: NVE) for $23.75 per share in cash. That's great news that more or less locks in a gain for the real-money Inflation-Protected Income Growth portfolio, which holds shares of NV Energy. Still, it raises a key question -- what should be done with the cash that the iPIG portfolio will get from that acquisition?

Watch the brief video below to find out what iPIG portfolio manager Chuck Saletta plans to do with the news.

To follow the iPIG portfolio as buy and sell decisions are made, watch Chuck's article feed by clicking here. To join The Motley Fool's free discussion board dedicated to the iPIG portfolio, simply click here.

Fool contributor Chuck Saletta owns shares of NV Energy. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.