Precision Castparts Corp (NYSE:PCP) is a manufacturer of complex metal components and products that provides investment castings, forgings and fasteners/ fastener systems for critical aerospace and power applications. On August 10th, Berkshire Hathaway announced an agreement to purchase Precision Castparts (NYSE:PCP) for $235/share, or roughly $37.2 billion including debt (Berkshire’s largest ever acquisition). While the transaction provides a boost to the Fund’s near-term performance, Berkshire is buying Precision at a modest discount to our base estimate of intrinsic value. Losing a long-term compounder early on in our investment horizon is disappointing, but the silver lining in this transaction is that we will continue to own PCP indirectly through our position in Berkshire.
From Wallace Weitz (Trades, Portfolio)'s 3Q 2015 commentary.
