As part of the pre-IPO wheeling and dealing of the Wall Street hype-and-hoopla machine, Buffett’s Berkshire Hathaway bought 2.1 million shares in a private placement and 4.04 million shares from former Snowflake CEO Robert Muglia in a secondary transaction, at the IPO price of $120 a share.
On the day of the red-hot IPO, fired up by Buffett’s hype-and-hoopla backing of Snowflake, the stock soared and Buffett, thanks to his hype-and-hoopla backing, made $800 million in one fell swoop on his 6.14 million shares. The $800 million one-day gain was widely touted in the press at the time.
Buffett’s only IPO darling is one of the countless members of my Imploded Stocks. Not yet a member, but working on filling out the application paperwork, is another big investor in Snowflake: cloud-software provider Salesforce, which owns 6.1% of Snowflake, and this widely touted “backing” helped fuel the hype and hoopla in the runup to the IPO.If Buffett Still Owns Snowflake Tonight, His Gain of $1.9 Billion at the High is Now a Loss of $37 Million | Wolf Street