ATVI - Warren Buffett Is Selling Activision Blizzard Stock. Should You?
Despite being one of history's greatest long-term stock pickers, Warren Buffett favors one short-term investing strategy known as "merger arbitrage," or buying stocks of companies trading below their acquisition prices.
In a recent Securities and Exchange Commission filing, Buffett-owned Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) showed that it trimmed its ongoing merger arbitrage play of Activision Blizzard (NASDAQ: ATVI) . Here are two investing takeaways from the latest move by the Oracle of Omaha.
According to Warren Buffett, he has participated in merger arbitrages for over 50 years. Most recently, Berkshire Hathaway, under Buffett's direction, bought shares of Activision Blizzard after Microsoft announced it was attempting to buy the gaming company for $95 per share.
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Warren Buffett Is Selling Activision Blizzard Stock. Should You?