Warren Buffett Picks Up Duracell in $4.7 Billion Stock Trade

Could avoid capital gains by using his P&G holdings

Warren Buffett bought battery brand Duracell for a whopping $4.7 billion Thursday. And with Duracell's recent foray into smartphone batteries, picking up the company from Procter & Gamble seems to be a prescient move.

Buffett's Berkshire Hathaway holding company in Omaha, Neb., purchased Duracell with its 1.9 percent holdings—worth $4.7 billion—in P&G, according to Forbes. Duracell was previously owned by The Mallory Battery Co. and then The Gillette Co., which P&G acquired in 2005.

Because Buffett essentially traded his stock for the brand, he could avoid capital gains taxes. The maneuver has been called a "cash rich split-off," and it's not new to Buffett. Forbes reported that the tycoon sloughed off his stock in White Mountain Insurance Group, Phillips 66, and The Graham Holdings Co. In return, he has gained everything from pipeline infrastructure to TV stations.

"Duracell is a leading global brand with top-quality products, and it will fit well within Berkshire Hathaway," Buffett said of his newest acquisition.