Buffett’s New Move

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Warren Buffett is paying a hefty price for the biggest bet of his career as his Berkshire Hathaway Inc (BRKa.N) has agreed to buy Precision Castparts Corp (PCP.N), valuing the maker of aerospace and other parts at $32.3 billion.

Questions:
1. According to the article, Berkshire’s new deal joins a foray of companies within other unglamourous sectors. Who are these other companies?
2. What is Buffett known for and why is this seen as somewhat of a departure?
3. Assume that you are explaining the specifics of the deal to your roommate, who is an Art major and unfamiliar with financial terminology. Draft your explanation in one paragraph.

Source:
Stempel, J., S. Jaisinghani, S. Singh. Buffett pays high price for Precision Castparts. Reuters, Aug. 10 (Retrievable online at http://www.reuters.com/article/2015/08/10/us-precision-cast-m-a-berkshire-hatha-idUSKCN0QD0LD20150810)