According to numerous media reports, Warren Buffett will soon be purchasing more shares of foreign steelmaker POSCO (PKX). Buffett already owns over 4% of the South Korean steel manufacturer. This is a curious move considering that Buffett has historically invested in quality companies selling at distressed prices. POSCO is a quality company but the current price doesn’t seem to be as cheap as the traditional Buffett investment.
Buffett thinks that the Kraft-Cadbury deal is a bad deal for shareholders of Kraft. He states that he would have voted against the proposed acquisition due to the issuance of share, high reorganization costs and the sale of its frozen pizza division. Only time will tell if Buffett is correct in his assertion that Kraft (KFT) is overpaying for the Cadbury franchise.
He spoke on CNBC yesterday and said those reports were wrong. He liked POSCO at the prices he bought it at, not right now. He said it was a language problem
@Chris
Thanks for the update!