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Buffett Poised to Clean Up in Bear Market

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

(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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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)
Billionaire investor Warren Buffett speaks in New York in this June 26, 2007 file photo.   (AP Photo/ Louis Lanzano, file)
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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credit crisis • recession • Warren Buffett • Berkshire Hathaway • bear market • Oracle of Omaha


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