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Buffett's Precision Castparts Investment Now Worth $100B

September 12, 2026

2 min read

Key Takeaways

Precision Castparts' value estimated at $100 billion.
GE Aerospace acquires competitor for $11.75 billion.
Shortage of complex metal components drives demand.
Berkshire Hathaway's 2016 acquisition now looks profitable.

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Strategic Implications

The surge in Precision Castparts' value may indicate a shift in the aerospace industry's demand for complex metal components. This could suggest a growing need for such products, which may benefit Berkshire Hathaway's investment. The acquisition by GE Aerospace may also signal increased competition in the market, which could impact Berkshire's future profits.

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What Happened

Berkshire Hathaway Subsidiary Sees Surge In Value Amid Shortage

Warren Buffett’s 2016 acquisition of Precision Castparts, a manufacturer of complex metal components, is now looking like a savvy investment. With a current estimated value of $100 billion, the subsidiary’s worth has nearly tripled since its purchase. A recent shortage of these components, used in engine turbine blades and natural gas turbines, has driven up demand. GE Aerospace’s $11.75 billion acquisition of competitor Consolidated Precision Products further highlights the industry’s growing need for these products. This development was first reported by Reuters and analyzed by Barron’s, as part of the Warren Buffett Watch newsletter.

Source | Originally Published: September 12, 2026

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