With subprime wreaking havic on the balance sheets of financials throughout the world, standing like a colossus it seems is Warren Buffett and his insurance focused investment company Berkshire Hathaway(BRKA & B).
Berkshire's shares after being largely neglected over the last few years ,despite wonderful underlying business fundamentals, have been on a tear since mid-June rising around 38% from around $3,600 per B share to close to $5000 over last 6 months.
Suddenly conservative and high quality is the mantra on Wall Street and Berkshire fits the bill perfectly. Sitting on $40 billion in cash, Buffett is likely to have plenty of opportunities to put that cash to work as the credit crisis unfolds over the next 12-18 months.
I believe Warren Buffett is the greatest investor of our generation and the credit derivative turmoil further reinforces his claim to this title.
Disclosure: I own (not enough unfortunately) BRK-B shares
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment