Market Overview

Bleakley's Peter Boockvar Talks About Buffett's Tech Data Loss

Share:
Bleakley's Peter Boockvar Talks About Buffett's Tech Data Loss

Billionaire investor Warren Buffett lost a bidding war against private equity giant Apollo Global Management to buy Tech Data Corp (NASDAQ: TECD).

It's a result of the "Oracle of Omaha" being too price-sensitive, according to Peter Boockvar, chief investment officer at Bleakley Advisory Group.

Tech Data's Customers Make It A Tech Middleman

Buffett and his firm Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) offered to buy Tech Data for $140 per share as a way of "playing technology by being technology agnostic," Boockvar said on CNBC's "Squawk Box" segment Friday.

Tech Data boasts more than 100,000 customers, so it is akin to a middleman or supplier within the tech industry.

Buying Tech Data is an easier way of gaining exposure to growth in the tech sector without having to figure out who has a good product and who does not, Boockvar said. 

Boockvar: Buffett Is 'Price Sensitive'

Buffett lost the bidding war because of his policy of not overpaying for stocks, the CIO said. 

Private equity firms are paying an EV/EBITDA multiple of nearly 12 times in contrast to a multiple of less than 10 in 2007, he said. 

Firms are flush with capital, and many feel pressure to put the money to use, Boockvar said. 

In comparison, Buffett is "more price sensitive" and has a reputation among some for being cheap, he said. 

Tech Data shares closed Friday's session up 12.32% at $144.89. Berkshire Class B shares were down slightly at $220.30.

Related Links: 

PreMarket Prep Recap: Muted Reaction To Trade Tensions, A Look At The Dividend Capture Strategy

Mid-Day Market Update: Crude Oil Down 4%; SORL Auto Parts Shares Spike Higher

Public domain photo via Wikimedia

Latest Ratings for BRK-A

DateFirmActionFromTo
Feb 2016MaintainsBuy
Nov 2014MaintainsMarket Perform
Nov 2014MaintainsBuy

View More Analyst Ratings for BRK-A
View the Latest Analyst Ratings

Posted-In: CNBC Peter Boockvar private equity TechnologyAnalyst Color M&A Analyst Ratings Media Best of Benzinga

 

Related Articles (BRK-A + BRK-B)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
AMRXRaymond JamesDowngrades
MDStifelUpgrades33.0
CATStandpoint ResearchDowngrades
LULUPiperJaffrayMaintains245.0
LULUWells FargoMaintains260.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Morgan Stanley Trading Losses Point To Need For 'More Fundamental Changes,' Finance Professor Says

PreMarket Prep Recap: Muted Reaction To Trade Tensions, A Look At The Dividend Capture Strategy