Berkshire Hathaway CEO Greg Abel Just Took a Page Out of Warren Buffett's Playbook, Plowing $930 Million Into a 'Wonderful Company at a Fair Price'

Berkshire Hathaway CEO Greg Abel has committed $930 million to Bending Spoons, a digital business roll-up company, extending a position that now stands at about 4%. The stake came in two pieces: $600 million in Bending Spoons' July IPO, then an additional $330 million more recently.

The fundamentals the article cites are strong. Bending Spoons has acquired 50 businesses, including AOL, Eventbrite, and Vimeo. Its Q2 results showed 126% revenue growth and 163% EPS growth.

The price is the sticking point. Shares now trade at $54.50, versus an IPO price in the $29-$33 range, a gain of roughly 65% to 88% from the offering level. At 39x forward earnings, the valuation looks far less like a bargain than it did at the IPO. Interpretation: the article frames Abel's move as a "wonderful company at a fair price" play in Warren Buffett's mold, but the stock's run-up means new buyers are paying a materially richer multiple than Berkshire's initial $600 million tranche did.

The filing-level detail worth noting is that Abel chose to add $330 million after the stock had already climbed, which signals continued conviction in the roll-up model. Interpretation only: it does not, by itself, make the current entry point attractive.