Warren Buffett’s Berkshire Hathaway Increases Stake in VeriSign to $2.7 Billion
Warren Buffett, the 94-year-old CEO of Berkshire Hathaway, continues to demonstrate his investment acumen with a significant increase in the company’s stake in VeriSign, the internet domain services provider. According to a recent SEC Form 4 filing, Berkshire Hathaway has become VeriSign’s largest shareholder, with its stake now valued at approximately $2.7 billion.
The filing revealed that Berkshire Hathaway acquired 143,424 shares of VeriSign in the three trading sessions ending December 24. Over a total of six trading sessions, the company purchased 377,736 shares for about $74 million. This latest acquisition brings Berkshire Hathaway’s total ownership to 13.2 million shares of VeriSign.
Following the news, VeriSign’s stock rose nearly 2% on Friday, reaching its highest level since late January before stabilizing amid a broader market sell-off. This investment is not new territory for Berkshire Hathaway, which first purchased shares in VeriSign in the fourth quarter of 2012.
VeriSign, founded in 1995, has attracted attention due to its impressive financial performance. The company boasts a profit margin of approximately 56%, tying with Nvidia for the fifth-highest profit margin in the S&P 500. Additionally, VeriSign ranks third for operating margin and 13th for gross margin, factors that likely influenced Berkshire Hathaway’s decision to increase its investment.
Despite these strong fundamentals, VeriSign’s stock performance has lagged behind the broader market this year. While the S&P 500 has risen approximately 25% year-to-date, VeriSign shares are down about 2% over the same period. The stock is currently trading about 21% below its record high set in December 2021.
This latest move by Berkshire Hathaway underscores Warren Buffett’s continued active involvement in investment decisions, even at the age of 94. The company’s increased stake in VeriSign suggests confidence in the long-term prospects of the internet infrastructure provider.
Berkshire Hathaway has not immediately responded to requests for comment on this investment decision.
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