Warren Buffett goes bargain hunting - in the United States
Filed under: Company News
Less than a year ago, billionaire Warren Buffett seemed enthralled by all things European. He went on a whirlwind tour looking for deals on the continent even though the euro was trading at a huge premium against the dollar. Now as the worldwide economy continues to weaken, the greatest investor in history has turned his attention back to the United States.
Buffett raised eyebrows a few months ago when he said he was buying American stocks for his personal account and that ''if prices keep looking attractive, my non-Berkshire net worth will soon be 100 percent in United States equities." Now, he is taking his "buy American" push a step further by adding more U.S. companies.
"The way things are going, there's a lot of things that may be happening in the United States," Buffett told Bloomberg TV, adding "the odds favor" a domestic deal for his Berkshire Hathaway Inc. (BRK.A).
With both the Dow Jones industrial average and S&P 500 down more than 20 percent this year and the Nasdaq Composite Index off by about 13 percent, Buffett has the chance to find unprecedented bargains, particularly if predictions of a turnaround in 2010 are true. He already has been busy making deals that have helped reduce Berkshire's cash position to $25.5 billion.
In July, Buffett agreed to buy $3 billion in Dow Chemical Co, (DOW) preferred shares, paying 8.5 percent and helping fund the takeover of Rohm & Hass. He also spent $8 billion on preferred shares of Goldman Sachs Group Inc. (GS) and General Electric Co. (GE), which pay 10 percent. Of course, he hasn't ignored Europe entirely, doing a $2.6 billion convertible note deal with Swiss Reinsurance Co.
Judging from his TV appearances, Buffett seems to be an optimist at heart. He comes across like everyone's favorite uncle. But unlike your relatives, he knows what he is talking about. They don't call him the Oracle of Omaha for nothing.
In his company's annual report, Buffett noted that Americans had survived worse economic time: "In the 20th century alone, we dealt with two great wars (one of which we initially appeared to be losing); a dozen or so panics and recessions; virulent inflation that led to a 21 1/2% prime rate in 1980; and the Great Depression of the 1930s, when unemployment ranged between 15% and 25% for many years. America has had no shortage of challenges."
Buffett appears to be following his own advice of investing to be greedy when others are fearful.
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Reader Comments (Page 1 of 1)
3-12-2009 @ 2:41PM
Judy Lynn Clark Ferguson said...
Warren this would be a good time to go into the solar energy and car lending business for those who have secured jobs and are credit worthy. Refinance some of those homes that the banks are foreclosing on and get the monopoly over the fraudulent banking industry who have taken our tarp money and invested it overseas.
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3-12-2009 @ 5:04PM
Dorothy said...
Hi Judy,
If you took all the loans and refi-ed them, you would still see a major part of them de-fault...It was Issueing loans to people who are not Qualified to repay them That caused
this ..Payment to % of Earning rule...Of those at purchase
..What would you do ..
Buy a home knowing it's a bigger chunk of your monthly income than you can afford,or,Save up and put down 10%-
20%,And live within your means..
Lets not let the Flipping of homes, banks, and brokers off the hook...
But it does make me angry that franks,dodd,and Obama
reaped hefty sums from fanny and freddy...with out being held to account...
But thats for leaders to pursue at a later date...
The first tarp fund was to keep our banks open...
They were broke....
Bankers know loans at this time must have solid returns.
Say your friend ,who you knew never repayed you ,wanted a loan...your decision is...?
Well Judy, Bankers can't be giving it away...so your friend
would not get the loan..
And let me add this to Warren Buffet..You are a smuck for helping with this disaster...you and Gates betting against our country!!!!
Buffett you are just like George Soros....
And now you lick your chops at the loss of hard working Americans Dreams......Happy Bargain hunting..
3-12-2009 @ 2:51PM
Judy Lynn Clark Ferguson said...
Marcus Garvey maybe this is the time for black nationalism where African Americans will shoe their independence from the white greedy society. Maybe it is time that some of the Non-Profit Churches ban together and open up a financial institution to start saving homes and communities that former Senator Phil Gramm and Gang set out to disrupt not knowing it was going to flow into their own communities. THIS IS THE TIME, LETS DO IT AND SHOW THE WHITE MAN African Americans have had to take care of one another for a very long time! I need someone to head this and my best person would be Dr. T. D. Jakes, if not him someone is out there! We want our own Banking Institutions, Business, Stores, Corporations, lets become independent from the White GREEDY WHOREMONGERS!
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3-12-2009 @ 3:22PM
MIchael said...
Hey Judy,
Your an African American racist pig..
3-12-2009 @ 4:22PM
Dorothy said...
To Clark,
Who is that person that looks back at you when looking in the mirror.....? Get over your self,Looks as if you have some
greedy( blacks ), that prey on the so called (African) American.
And !,
Having the great Democratic machine on the job taking care of your best interest, hang on to your backside,
and bank account......
It may help the (African )American , If Obama would choose his friends and pastors from the honest hard working (African) Americans ,and ,not those that are ,And have for generations been the very ones that have used their position, As leaders,to abuse the system of this(GREAT COUNTRY ),and ,HER PEOPLE REGARDLESS OF COLOR!
Here's a reading list of who's who in Obama's inner circle.Do some home work Enlighten yourself.
(George Soros) is a real gas, With his nutty Ideas. But be very afraid if he accually gets his way , you won't have an America...
And ( Al Gore)...What can we say that he has done for you...( If you drive to work),Your footprint Should be across his backside ,and not in your's...
Watch those light bulbs, it takes a haz-mat team to clean up your broken bulbs...Wonderful Items to put your kids in danger ...(can you say Mercury ) .
Lets not forget the (Rev. Wright).Can he Preach or what?
Or Shady deals (Rezco).Grants for low income,to improve Building standards for tenants...O.K.
But Obamas Home is nice...Wouldn't you say?
Do you think we are all getting soaked ,or, just the
(African Americans)?
Do your self a favor and get informed ...
Isn't it Wonderful how well this group takes care of (All)
Americans ?
3-12-2009 @ 5:53PM
Elisabeth said...
Judy, your idea is sound and very interesting. Historically, immigrant groups banded together to form lucrative business arrangements, why not African Americans? Business is business, and I agree with the trickle-down theory that everyone benefits when everyone prospers. Good luck in your efforts!
3-12-2009 @ 3:41PM
williamg said...
Judy please return all your welfare check's as soon as possible and since this is a free country, feel free to leave at any time. Oh and take your fatherless children with you.
Reply
3-13-2009 @ 12:27PM
bruce davidson said...
Bruce says to Judy
I am tempted to show your offensive blog to my sons, holding it up as an example of everything we warned them not to ever think, do or say. I will not, however, as they have many black friends, as do I.
As a white European Immigrant, I am appalled by your comments. It is reminiscent of 19th Century Fascism at its worst. I hope you really are as miserable as your writing portrays. You need to seek psychiatric help. Probably need to ask yourself whether you should move to South Africa too....I am sure, if you did, that you would be back here within days, recognising that blacks killing blacks is a far more pressing issue in the World today than whites mistreating blacks. This country bends over backwards to help blacks, in many cases with great prejudice to the chances of other creeds and races because we are all made to feel so guilty about stuff that is 6 generations removed. Keep writing stuff like this and see how President Obama owuld embrace it. He'd run so far the other way you'd have to look for a new gray train.
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3-16-2009 @ 10:20PM
Junkiam said...
Warren said he is open for business. He is definitely lookig to buy if the right deal comes along.
Here is an article about it with the bloomberg video:
http://warren-e-buffett.com/index.php/category/videos/
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