Warren Buffett’s Berkshire Hathaway (BRK.B) appears to have purchased Bell Laboratories, a privately held company that is a leader in pest control involving mice.
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Wisconsin-based Bell Laboratories now appears on Berkshire Hathaway’s website under a list of subsidiaries that the conglomerate owns outright. However, neither Buffett, Berkshire Hathaway, nor Bell Laboratories have commented publicly on the situation.
However, there have been reports in industry trade journals that Bell Laboratories was purchased by Berkshire Hathaway on July 31 and will continue to operate independently as a subsidiary. Bell Laboratories claims to be “the world leader in rodent control” with an array of baits and traps designed specifically for catching rats, field mice, and other rodents.
In Good Company
Bell Laboratories was founded in 1974 by Malcolm Stack and was owned by his daughters until the sale to Berkshire Hathaway this summer, according to reports. There is even one report that Buffett himself visited Bell Laboratories’ corporate headquarters on Aug. 4 to meet with the pest control company’s CEO Steve Levy.
The acquisition fits with Buffett’s preference for buying family-owned businesses that have a long track record of success and provide easy-to-understand but essential services. Other Berkshire Hathaway subsidiaries listed alongside Bell Laboratories include battery maker Duracell, paint company Benjamin Moore, and Fruit of the Loom, the maker of underwear. BRK.B stock is up 11% this year.
Is BRK.B Stock a Buy?
Only one analyst currently offers a rating and price target on Berkshire Hathaway’s more affordable class B stock. So instead, we’ll look at the stock’s three-month performance. As one can see in the chart below, shares of BRK.B have declined nearly 1% in the last 12 weeks.
