(Bloomberg) Warren Buffett conceded a mistake with one of his biggest deals in recent years: the $37.2 billion purchase of Precision Castparts Corp. in 2016.“I paid too much for the company,” the billionaire investor said Saturday in his annual letter. “No one misled me in any way I was simply too optimistic about PCC’s normalized profit potential.”Buffett’s Berkshire Hathaway Inc. took an almost $11 billion writedown last year that was largely tied to Precision Castparts, the maker of equipment for aerospace and energy industries based in Portland, Oregon.Precision Castparts has struggled as the coronavirus pandemic slashed demand for flights, prompting airlines to park jets and reduce schedules. That means less need for replacement parts and a big drop in aircraft purchasing. Precision slashed its workforce by about 40% last year, according to Berkshire’s annual report.And the slump in travel is expected to persist, leading to more
Read more about Buffett upbeat on US, Berkshire; buys back stock even as Covid hits results on Business Standard. Buffett also signaled a long-term commitment to Apple Inc
Warren Buffett makes mistakes too. The 90-year-old billionaire on Saturday admitted he "paid too much" when his Berkshire Hathaway Inc spent $32.1 billion in 2016 to buy aircraft and industrial parts maker Precision Castparts Corp, its largest acquisition. Berkshire wrote off $9.8 billion of Precision's value last August, as the coronavirus pandemic sapped demand for air travel and the Portland, Oregon-based unit's products.
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