Capital Cities/ABC and Disney (NYSE: DIS)
First Shares Purchased: 1979
Date Sold: 1996
Amount Made: $2.2 Billion (Realized and Unrealized)
Percentage Gain: N/A
Buffett purchased 20 million shares of Capital Cities/ABC at a cost basis of $345 million. At the end of 1995 the unrealized gains on those holdings were worth $2.5 billion. As reported in the Berkshire Hathaway Annual Report at the end of that year: “On January 4, 1996, shareholders of Capital Cities/ABC, Inc. … and The Walt Disney Company … approved an agreement and plan of merger by and between Disney and Capital Cities. In March 1996, Berkshire received about 21 million shares of Disney common stock and $1.2 billion in cash in exchange for the common shares of Capital Cities.” Berkshire reported a total realized and unrealized gain, between the shares and the cash, of $2.2 billion.
(AP Photo/Reed Saxon)