Buffett Buys Bling
Warren Buffett's Berkshire Hathaway is adding to its 'bling' collection as it finalizes the acquisition of two gold jewelry makers: Aurafin and Bel-Oro International.
Berkshire's wholly owned subsidiary Richline Group first announced "definitive agreements" to buy the companies in May.
The deals make Richline the nation's largest supplier of gold jewelry to retailers. Richline already owns a number of those retailers, including Ben Bridge, Helzberg Diamonds and Borsheims Fine Jewelry.
Buffett picked up Aurafin from the private-equity firm Norwest Equity Partners for an undisclosed amount. As MarketWatch points out, that's not the way he usually does business. It quotes Buffett as saying last year that PE firms are usually looking for "strategic" buyers .. and "a strategic buyer is just someone who pays too much." That certainly doesn't describe Warren's investing style. Berkshire investor Whitney Tilson is quoted by MarketWatch as saying some "unusual factors" must be at work.
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