Warren Buffett's Berkshire Hathaway is set to plow more than $550 million into Snowflake when the cloud-data company goes public

Paul Morigi / Stringer / Getty Images
  • Warren Buffett’s Berkshire Hathaway is set to invest $US250 million in Snowflake when it goes public, according to the cloud-data group’s amended S-1 filing.
  • The billionaire investor’s company will buy about 3.1 million Class A shares, and has also agreed to purchase another 4 million shares from former Snowflake CEO Robert Muglia.
  • Salesforce’s strategic venture arm has also agreed to invest $US250 million in Snowflake stock.
  • Berkshire’s bet is striking as Buffett has historically stuck to companies he understands, and joins a string of unusual moves from Berkshire, such as investing in a gold miner and acquiring 5% stakes in five Japanese trading companies.
  • Visit Business Insider’s homepage for more stories.

Warren Buffett’s Berkshire Hathaway has agreed to invest $US250 million in Snowflake when it goes public in the coming weeks, according to the cloud-data company’s amended S-1 filing.

The famed investor’s conglomerate will purchase roughly 3.1 million Class A shares in a private placement, based on the $US80 midpoint of Snowflake’s expected IPO price range of $US75 to $US85.

Buffett’s company has also agreed to buy another 4 million Class A shares from former Snowflake CEO Robert Muglia in a secondary transaction, paying the IPO price for each share. That could cost it $US303 million to $US344 million based on the expected price range.

Read more


Bank of America lays out the under-the-radar indicators showing that huge swaths of the stock market are ‘running on fumes’ — and warns a September meltdown may just be getting started

If both purchases go through, Berkshire could spend upwards of $US550 million for about 7.2 million shares, representing roughly 26% of the 28 million Class A shares that Snowflake plans to offer. That stake could fall to around 22% if the underwriters of the IPO sell their allotted shares and fully exercise their option to buy an additional 4.2 million Class A shares.

Salesforce has also agreed to purchase $US250 million of Snowflake stock through its strategic venture arm, Salesforce Ventures, the filing shows.

Snowflake declined to comment in an email to Business Insider.

Read more:


OLDMAN SACHS: Buy these 19 stocks right now for big future gains once a COVID-19 vaccine is available

The bet is striking as Buffett famously eschews tech stocks, preferring to invest in businesses he understands. It joins a flurry of surprising moves for Berkshire, such as making its first investment in a gold miner and slashing its stakes in JPMorgan, Wells Fargo, and other financial stocks last quarter.

Berkshire also disclosed 5% stakes in the five biggest Japanese trading companies or “sogo shosha” last week, and bought $US2.1 billion of Bank of America stock over 12 straight trading days to August 4.

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.