Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Buffett Poised to Clean Up in Bear Market

Oracle of Omaha prepares $40B spending spree

By Jason Farago,  Newser Staff

Posted May 2, 2008 2:02 PM CDT

(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."

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.
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)
Warren Buffett testifies on Capitol Hill in Washington, Wednesday, Nov. 14, 2007, before the Senate Finance Committee hearing on the federal estate tax.
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)
Billionaire investor Warren Buffett speaks in New York in this June 26, 2007 file photo.
Billionaire investor Warren Buffett speaks in New York in this June 26, 2007 file photo.   (AP Photo/ Louis Lanzano, file)
« Prev« Prev | Next »Next » Slideshow
To report an error on this story, notify our editors.
A snapshot of the day's best news stories.
 
COMMENTS
Be the first to comment on this story.

More Newser Stories

Buffett: US 'Doing the Right Things'

Financial 'Pearl Harbor' Is Past, Says Buffett

US in Recession Now: Buffett

Buffett: 'Financial Panic Is Behind Us'

Buffett Bets on Recovery, Buys Burlington for $26B


NEWS FROM OUR PARTNERS
Other Sites We Like:   24/7 Wall St.   |   Betty Confidential   |   BuzzFeed   |   Cracked   |   Fark   |   Timelines   |   The Frisky   |   Geek Sugar   |   NewsOne