Berkshire Hathaway Books Profits In Verisign

Famed investor Warren Buffett is booking profits and selling down his stake in internet domain registry Verisign (VRSN).

Through his holding company Berkshire Hathaway (BRK.A / BRK.B), Buffett is selling 4.3 million shares of Verisign and lowering his stake in the company to below 10%.

The sale is expected to generate about $1.2 billion U.S. for Berkshire Hathaway based on Verisign’s current stock price.

Once the sale is complete, Berkshire will continue to own about nine million shares of Verisign worth $2.6 billion U.S.

The stock sale is being underwritten by U.S. bank JPMorgan Chase (JPM).

In a news release, Verisign said the deal is being sized so that Berkshire’s stake will fall below the 10% threshold.

A stake above 10% brings additional regulatory and disclosure requirements to Berkshire Hathaway.

Buffett has been a shareholder of Verisign since 2012, and Berkshire added to its position in the internet company in 2024 and earlier this year when the stock was trading around $200 U.S.

Verisign’s share price is up 50% year to date and near a 52-week high, making it one of Berkshire Hathaway’s best-performing investments.

Many of Buffett’s bets, notably his oil stocks, have underperformed the market this year and proven to be a drag on Berkshire Hathaway’s own share price.

However, VRSN stock is down 7% and trading at to $286 U.S. on news of Buffett’s sale.

offloading part of a holding through an underwritten sale is unusual for Berkshire. Typically, Berkshire buys and sells shares on the open market.

However, Verisign’s stock is less liquid than other Berkshire holdings such as Bank of America (BAC) and Apple (AAPL), which may have led Buffett to involve JPMorgan.

Berkshire Hathaway’s more affordable Class B shares are currently trading at $481.70 U.S., having gained 7% this year.