Sunday, December 13, 2009

CHICAGO TRIBUNE: Warren Buffett discloses 6% stake in Nalco Holding Co.

Investing guru Warren Buffett"s Berkshire Hathaway Inc. disclosed in a regulatory filing Tuesday that it has amassed an 8.74 million-share stake in Nalco Holding Co., the Naperville provider of water-treatment chemicals and services.

Buffett"s Omaha investment vehicle made the disclosure, its first revelation of an interest in Nalco, in a quarterly filing for the period ending Dec. 31.

Because Buffett is celebrated for his long-term stock-picking acumen, many investors scrutinize the investor"s portfolio and emulate his strategy; as a result, the stock of companies in which Buffett takes an interest often experience a temporary surge in the wake of Berkshire"s disclosure.

Nalco recently reported an average of 137.4 million shares outstanding in the Dec. 31 quarter; based on that figure, Berkshire"s filing indicates Buffett"s investing vehicle has a 6.4 percent holding in Nalco.
A Nalco spokesman said the company had not been aware of the Berkshire purchase until Tuesday.

"We welcome Berkshire Hathaway as a shareholder and appreciate their interest and confidence in Nalco as an investment," he said.

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