The Bank of Buffett Is Open

As reported in a recent Bloomberg article, Warren Buffett's telephone has been ringing off the hook. As the credit markets seize-up, more distressed sellers are turning to Omaha as the last source for funding.

As mentioned in the article, "Buffett right now is probably about the only money in the world, in the billions of dollars range, that the check will clear overnight." This has some analysts bullish on Berkshire Hathaway (BRK.A) stock. Buffett is known as a value investor, and the market is certainly on sale right now. The combination of his deep pockets allowing him to buy just about whatever he wants, and his liquidity and reputation allowing him to set the terms, makes it likely that he will be able to add value to Berkshire.

Of interest in the article is how the price of Berkshire stock has been rising as the TED spread (bank borrowing cost) has been increasing. As usual, market corrections have a way of separating the wheat from the chaff.

Comments

[long_on_oil:]

Buffet will take Berkshire to 250,000 in 2 years because of this buying opportunity.

2008 Sep 19 09:28 AM

[rcraig:]

So what happens to the value of the stock if something happens to Warren?
Not a very responsible company in my opinion. Just a very highly over valued stock backed by a name.
If so many idiots in the market were not trying to catch up with Bill Gates and Warren Buffet and short sellers were not putting so much pressure on corporations to produce a profit we could have avoided as big of an impact as we felt in the last week or so.
I have a lot of faith in alternative energy stocks like HTM, RZ and the support services that help them construct new generator plants.

2008 Sep 22 05:23 PM