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Buffett Says He Won't Get Involved With Workers Strike

Warren Buffett said he won’t intervene with a steelworkers strike at a division of a company owned by Berkshire Hathaway.
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Warren Buffett told Sen. Bernie Sanders (I-Vt.) this week that he won’t get involved with a steelworkers strike at a division of a company owned by the investment icon’s Berkshire Hathaway  (BRK.B) - Get Berkshire Hathaway Inc. Class B Report.

It’s Special Metals, which is part of Berkshire’s Precision Castparts.

In a letter dated Tuesday and released by Sanders’ office Thursday, Buffett said he’s staying out of the dispute. Berkshire’s policy is to allow its companies to “deal individually with their own labor and personnel decisions,” he wrote in the letter, as cited by CNBC.

“I’m passing along your letter to the CEO of Precision Castparts but making no recommendation to him as to any action,” Buffett said. “He is responsible for his business.”

About 450 Special Metals workers went on strike in Huntington, W.V. Oct. 1, with healthcare costs a major part of the dispute.

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Berkshire Class B shares recently traded at $310, barely changed. Morningstar analyst Greggory Warren puts fair value at $320 and assigns the company a wide moat.

Berkshire made Barron’s top 10 list of promising stocks for 2022.

“Buffett refuses to pay a dividend, but Berkshire has ramped up its stock buybacks and should repurchase more than 4% of its shares this year,” wrote Barron’s Andrew Bary.

“It trades for 1.35 times our estimate of year-end book value, a cheap level, given that its businesses are probably worth much more than their carrying values.”

Bary seconded Buffett’s 2006 assessment that “the company has a multitude of diversified and powerful streams of earnings, Gibraltar-like financial strength, and a deeply imbedded culture of acting in the best interests of shareholders.”