5 Stocks Berkshire Hathaway Should Buy With Its DirecTV Windfall

By Matt Frankel – May 26, 2014 at 2:00PM

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Whether or not they keep the AT&T shares coming to them, Berkshire will have a lot of cash to put to work once the purchase of DirecTV closes.

It was recently announced that AT&T (T 1.17%) plans to buy DirecTV (DTV.DL) for $48.5 million plus the assumption of their debt. As DirecTV's largest shareholder, Berkshire Hathaway (BRK.A -0.34%) 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.

Matthew Frankel has no position in any stocks mentioned. The Motley Fool recommends Apple, DirecTV, and Ford. The Motley Fool owns shares of Apple and Ford. 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.