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5 Stocks Berkshire Hathaway Should Buy With Its DirecTV Windfall

It was recently announced that AT&T (NYSE: T  ) plans to buy DirecTV (NASDAQ: DTV  ) for $48.5 million plus the assumption of their debt. As DirecTV's largest shareholder, Berkshire Hathaway (NYSE: BRK-A  ) owns about 34.5 million shares, for which they'll be compensated a total of $95 per share.

They'll receive $28.50 per share in cash, for a total of just under $1 billion, plus the balance $66.50 in AT&T stock, which as of this writing translates to approximately 63.7 million shares worth $2.3 billion. Not a bad return when you consider most of their original investment was acquired for less than $43 per share in 2011.

Whether or not Berkshire will decide to keep its AT&T stake remains to be seen, but whether they sell those shares or not, the one certainty is they will have a new chunk of cash to put to work. Here are a few great values in the market Berkshire could use to fill the void left by DirecTV.

Is this the next Warren Buffett home run?
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!


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Matthew Frankel
KWMatt82

Matt brought his love of teaching and investing to the Fool in order to help people invest better, after several years as a math teacher. Matt specializes in writing about the best opportunities in bank stocks, real estate, and personal finance, but loves any investment at the right price. Follow me on Twitter to keep up with all of the best financial coverage!

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Related Tickers

7/6/2015 1:50 PM
AAPL $125.53 Down -0.91 -0.72%
Apple CAPS Rating: ****
BRK-A $205560.00 Down -363.00 -0.18%
Berkshire Hathaway… CAPS Rating: ****
DTV $93.75 Down -0.56 -0.59%
DirecTV CAPS Rating: ***
F $14.80 Down -0.08 -0.50%
Ford CAPS Rating: ****
T $35.54 Down -0.20 -0.55%
AT&T CAPS Rating: ***

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