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Bleakley's Peter Boockvar Talks About Buffett's Tech Data Loss

Jayson Derrick

Billionaire investor Warren Buffett lost a bidding war against private equity giant Apollo Global Management to buy Tech Data Corp (NASDAQ: TECD).

It's a result of the "Oracle of Omaha" being too price-sensitive, according to Peter Boockvar, chief investment officer at Bleakley Advisory Group.

Tech Data's Customers Make It A Tech Middleman

Buffett and his firm Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) offered to buy Tech Data for $140 per share as a way of "playing technology by being technology agnostic," Boockvar said on CNBC's "Squawk Box" segment Friday.

Tech Data boasts more than 100,000 customers, so it is akin to a middleman or supplier within the tech industry.

Buying Tech Data is an easier way of gaining exposure to growth in the tech sector without having to figure out who has a good product and who does not, Boockvar said. 

Boockvar: Buffett Is 'Price Sensitive'

Buffett lost the bidding war because of his policy of not overpaying for stocks, the CIO said. 

Private equity firms are paying an EV/EBITDA multiple of nearly 12 times in contrast to a multiple of less than 10 in 2007, he said. 

Firms are flush with capital, and many feel pressure to put the money to use, Boockvar said. 

In comparison, Buffett is "more price sensitive" and has a reputation among some for being cheap, he said. 

Tech Data shares closed Friday's session up 12.32% at $144.89. Berkshire Class B shares were down slightly at $220.30.

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Public domain photo via Wikimedia. 

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Feb 2016 Maintains Buy
Nov 2014 Maintains Market Perform
Nov 2014 Maintains Buy

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