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May 17, 2008 12:45:22 AM CDT

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Buffett Poised to Clean Up in Bear Market  

Posted May 2, 08 2:02 PM CDT in Business    Most Covered

(newser) – As the US teeters on the brink of recession and most investors remain sidelined by the credit crunch, Warren Buffett is poised to spend more than $40 billion to scoop up bargains. Berkshire Hathaway rose 22% over the last 12 months while other stocks sputtered, and now, Bloomberg reports, the company is one of the few with the cash on hand to profit from a bear market.

This week, Buffett committed $6.5 billion to help Mars overtake Wrigley, a deal that no banks or private equity firms were able to make. The world's richest man is now poised to continue the buying spree, netting substantial discounts in a tough market. "Buffett has the liquidity that others are lacking," said one fund manager. "The disruptions work in his favor. This is a perfect market for Berkshire."

Source Bloomberg

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Buffett Poised to Clean Up in Bear Market
Billionaire investor Warren Buffett, left, who plays himself, is shown on the set with soap opera icon Susan Lucci on ABC Daytime's "All My Children."   (AP Photo/ABC, Steve Fenn)
Buffett Poised to Clean Up in Bear Market
Billionaire investor Warren Buffett speaks in New York in this June 26, 2007 file photo.   (AP Photo/ Louis Lanzano, file)
Buffett Poised to Clean Up in Bear Market
Warren Buffett testifies on Capitol Hill in Washington, Wednesday, Nov. 14, 2007, before the Senate Finance Committee hearing on the federal estate tax.   (AP Photo/Dennis Cook)
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Tags

recession  • credit crisis  • Warren Buffett  • Berkshire Hathaway  • bear market  • Oracle of Omaha


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