UPDATE 1-Buffett's Berkshire reveals Charter stake, cuts DirecTV

Thu Aug 14, 2014 6:19pm EDT
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By Luciana Lopez and Jonathan Stempel

NEW YORK Aug 14 (Reuters) - Warren Buffett's Berkshire Hathaway Inc disclosed a new $366 million stake in cable TV operator Charter Communications Inc and pared its holdings in two other pay-TV companies, part of a flurry of changes in its stock investments during the second quarter.

Shares of Charter shares rose about 2 percent after-hours after Berkshire reported a new 2.3 million share stake, according to a U.S. Securities and Exchange Commission filing that detailed its domestic equity investments as of June 30.

Charter is "the play of choice on cable consolidation," said Wunderlich Securities analyst Matthew Harrigan.

"You've got a good story on an as-is basis and if they do more deals they can do a lot more value," he said.

DirecTV is awaiting regulatory approval to sell itself to AT&T for $48.5 billion.

Charter declined to comment. A message left with DirecTV was not immediately answered.

Shares of companies often rise after Berkshire reveals new investments because some investors consider it a vote of confidence by Buffett and try to copy him.

Berkshire did not disclose whether the Charter investment was made by Buffett or one of his portfolio managers, Todd Combs and Ted Weschler.   Continued...