Why Warren Buffett Loves Activision Blizzard Stock
As one of the most successful stock pickers in history, Warren Buffett regularly inspires investors around the world. Some of those folks may be interested to know that Buffett's holding company, Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B), has taken a targeted interest in video game powerhouse Activision Blizzard (NASDAQ: ATVI) throughout 2022.
At the end of 2021, Berkshire Hathaway owned roughly 1.8% of Activision Blizzard. Buffett increased his stake in the games company more than once in 2022, with shares growing from 64.3 million to 68.4 million in August -- or about 8.7% of Activision. Let's take a look at why it has captured Buffett's interest.
Buffett's move to increase his investment in Activision Blizzard was prompted by Microsoft's (NASDAQ: MSFT) announcement in January that it would acquire the gaming company for $95 per share in an all-cash transaction valued at $68.7 billion. The deal would be the biggest the gaming industry has ever seen, and thus attracted scrutiny from regulators around the world. Buffett garnered criticism back in April when Berkshire Hathaway first increased its investment in the company, as analysts believed the move was a gamble in the face of pending regulatory decisions.
Source Fool.com
