Warren Buffett's Berkshire Buys Charter Communications in Q3
Warren Buffett (Trades, Portfolio)'s company Berkshire Hathaway (BRK.A)(BRK.B) has reported buying a new stock in the third quarter: Charter Communications Inc. (CHTR). As a small holding, one of Buffett's two portfolio managers, Ted Weshler or Todd Combs, likely bought the stock.
Berkshire reported owning 2,309,013 shares of the company, which makes it 0.34% of the portfolio. The company's share price in the third quarter was $138 on average. It has since risen 11% to trade around $153.05 per share on Thursday.
Chart Communications is a cable services provider with a $16.2 billion market cap that competes with companies like DirecTV (DTV) and Verizon (VZ), both Buffett holdings.
In the third quarter Charter's revenue grew 8% from the prior-year quarter to $2.3 billion, driven by growth in Internet, video and commercial. Its net loss was $53 million, compared to $70 million a year prior.
In the past five years, Charter grew revenue at a rate of 38.3%, EBITDA at 76% and free cash flow at 45.9%, on average annually.
Charter has a P/B ratio of 171.9 and P/S ratio of 1.8, close to a five-year high.
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This article first appeared on GuruFocus.