Dollar General and Verisk are experiencing the “Buffett Bounce,” which is what happens when the market finds out Warren Buffett has taken a stake in a company. But here’s the thing: he didn’t.
Investors seem not to realize it’s almost certain new Berkshire investment manager Todd Combs was the one responsible for buying stock in Dollar General.
Combs, hired to manage a corner of the Berkshire portfolio, had made two investments as of July 8, according to a Buffett interview on Bloomberg Television that day. One likely candidate, MasterCard, was disclosed three months ago.
“I didn’t buy it,” Buffett said of MasterCard in that interview. When Buffett take a stake, he goes big, but the Dollar General investment is worth just $50 million. For Buffett, that’s peanuts..
http://blogs.wsj.com/deals/2011/08/16/the-combs-climb-for-warren-buffetts-new-sidekick/?mod=
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