Buffett Turns Wall Street's Frown Upside Down

Star investor hunts for lucrative bargains

By Heather McPherson, Newser User

Posted Aug 21, 2007 3:43 PM CDT

(Newser) – Wall Street may be seeing red after weeks of volatility and losses, but Warren Buffett is seeing green as he goes bargain-hunting for the same kind of junk bonds and stocks that have netted him nearly $50 billion, the Journal reports. Downtrodden deal-makers are hoping the star investor will use his Midas touch to buffer their bottom lines.

Subprime-collapse casualty Countrywide, with its suite of high-quality mortgages, could be one apple of Buffett’s golden eye. Leaving no stock unturned, Berkshire has also been gobbling shares of struggling companies Buffett already owns. Says one fund manager who's also a Berkshire shareholder: "This is Berkshire Hathaway's market."

[Images (8)]

[Videos (1)]

Billionaire investor Warren Buffett speaks at a forum/ fundraiser to support Senator Hillary Rodham Clinton D. New York (also in attendance) in her bid for the presidency,Tuesday, June 26, 2007, in New... (Associated Press)

Warren Buffett, chairman of Berkshire Hathaway, is seen following a news conference in Omaha, Neb., in this May 6, 2007 file photo. Berkshire Hathaway Inc. is expected to release quarterly earnings on... (Associated Press)

Warren Buffett, chairman of Berkshire Hathaway, is seen following a news conference in Omaha, Neb., Sunday, May 6, 2007.(AP Photo/Nati Harnik) (Associated Press)

Investor Warren Buffett plays bridge with shareholders May 7, 2006, during the annual Berkshire Hathaway shareholders meeting in Omaha, Neb. Buffett usually attracts most of the spotlight when the holding... (Associated Press)

The flags on the facade of the New York Stock Exchange are a backdrop for a Wall Street street sign, Thursday morning, Aug. 16, 2007. U.S. stocks appeared headed for another sharp retrenchment Thursday... (Associated Press)

Trader Paul Laregina takes a break on the floor of the New York Stock Exchange, Tuesday, Aug. 14, 2007. Wall Street pulled back sharply Tuesday on anxiety about the pace of consumer spending amid a disappointing... (Associated Press)

Trader James Fanning takes a break on the floor of the New York Stock Exchange Tuesday Aug. 14, 2007. Wall Street pulled back sharply Tuesday on anxiety about the pace of consumer spending amid a disappointing... (Associated Press)

Specialist Benton Bocklet works at his post on the floor of the New York Stock Exchange, Tuesday, Aug. 14, 2007. Wall Street pulled back sharply Tuesday on anxiety about the pace of consumer spending... (Associated Press)

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Buffett Turns Wall Street's Frown Upside Down