Billionaire industrialist Warren Buffett has purchased 100 percent of the American Fashion Magazine.
The move comes as his conglomerate Berkshire Hathaway (BRKa) faces increasing scrutiny as a result of the allegations of predatory lending.
Mr Buffett, who is the co-owner of the company with his brother Robert, has long been outspoken on climate change, consumerism, and social issues.
The opportunity to acquire a controlling stake in this important company was an excellent opportunity for our board to strengthen our leadership position and provide an important platform for our philanthropic efforts. “
The #AFFM is a beacon of hope for our society, a shining example of the positive vibes that are still possible to achieve through innovation, entrepreneurship, and stewardship of the planet.”
The opportunity to acquire a controlling stake in this important company was an excellent opportunity for our board to strengthen our leadership position and provide an important platform for our philanthropic efforts.
We are excited to have the opportunity to make meaningful improvements to our business model and to provide greater value to our shareholders.
The stock will trade at a price of $27.40 this morning.”
The move was the latest in a string of recent corporate moves by Mr Buffett, whose Berkshire Hathaways holdings include the Chicago Board of Trade and the conglomerate.
It comes after Mr Buffett and his wife, Jane, last month sold their majority stake in The New York Times Company to the publishing giant for $130 billion, bringing his net worth to $5.4 trillion.
He has previously been criticised for the way his Berkshire Hathairs brands are run, saying in 2014: ‘The way I see it, we need to be able to take advantage of the tremendous opportunities and opportunities that are here.
‘I believe in the principles of business that we should be able, as a society, to have a strong market for our products and services.’
But in his latest tweet, Mr Buffett also said that the move was not about the way the company operates.
(Mr Buffett’s tweet was posted shortly after his Berkshire-owned company, Berkshire Hathway, announced it had completed the sale of its stake in the Times, with the new owners to become Berkshire’s new owners.)”
The focus of the purchase was not so much the way we run our business as what is possible in the future,” he said.”
We want to be the best company on the planet for our shareholders and for our employees.”
Mr Warren, who founded Berkshire Hathay in 1975, was also the founder of the world-famous company that became Berkshire Hathafarian.
Buffett’s move comes after he recently announced his plans to buy a controlling share in the US News and World Report, a business that is owned by Rupert Murdoch’s News Corp. As part of the move, Berkshire announced that it had sold its remaining 49.9 percent stake.
Last week, Mr Murdoch said he would not be able have his News Corp holdings merged with his own.
At the time, he made clear that he had no intention of selling his stake in News Corp, but was willing to sell the News Corp stake to a group of investors.
Now, the News of the World’s parent company, News Corp itself, will become an independent company.
Meanwhile, Mr Warren’s wife, Elizabeth, is the chair of the board of the New York Stock Exchange, the nation’s largest stock exchange.