Berkshire Hathaway, the multinational conglomerate managed by legendary billionaire investor Warren Buffett made around $800 million in profits from its investment in Snowflake, which had its initial public offering (IPO) on Wednesday.
During its market debut, the stock price of Snowflake surged 111% to $253.93 per share.
Berkshire Hathaway purchased $250 million worth of Snowflake shares in a private placement and bought additional 4.04 million shares from a stakeholder in a secondary transaction at the IPO price of $120 each.
The total purchase piece for its stake in the cloud computing company was about $734.8 million. After Snowflake’s IPO, Berkshire Hathaway’s stake was worth around $1.55 billion therefore its paper profit on the cloud computing company’s first day of trading was over $800 million.
In fact, Snowflake traded as much as $319 per share during its market debut. Considering that, Buffett’s conglomerate could have made as much as $1 billion in paper profits.
