Is Warren Buffett Going After Countrywide (Plano, TX) and TXU (if the KKR Deal falls through?)


Is Warren Buffett Going After Countrywide (Plano, TX) and TXU (if the KKR Deal falls through?)

21 August 2007 at 11:26:55 AM

Interesting. First up, I hadn't really thought about Countrywide being part of the whole subprime mortgage debacle but god knows I see enough commercials about it on the television.

Warren Buffett, who has built his reputation on value investing and bargain hunting, may feel the time is ripe to make a move in the wake of steep sell-offs resulting from the turmoil generated by the subprime crisis. According to the Wall Street Journal, the billionaire investor and chairman of Berkshire Hathaway, who is sitting on $50B in cash, may buy parts of Countrywide Financial Corp., one of the lenders hardest hit by subprime worries. Investors, the report said, believe Countrywide’s strong brand name and high-quality mortgage assets may be attractive to Buffett, as Berkshire’s insurance unit already doubled its investment in mortgage-backed securities rated “AA” or higher during the second quarter. “This is Berkshire Hathaway's market,” said Thomas Russo, a partner at investment fund Gardner Russo & Gardner and long-time investor in Berkshire told the Journal. Given the now difficult market for private-equity deals, the Journal also speculated that Buffett could make a move for Texas utility TXU Corp. if its deal with Kohlberg Kravis Roberts falls through. Or, it said, he could choose to increase his holdings in companies he already owns. He has been increasing his holdings in financial services companies, and earlier this month disclosed an investment in Bank of America. Berkshire is also a long-time shareholder in Wells Fargo. In addition to the cash stash, Berkshire holds some $74B in stocks and $27B in bonds, which Buffett has said he would happily redeploy for better returns. Buffett, as always, refused to comment, as did Countrywide and TXU.

     Views: 746 
Latest Blog Post by salon -Most Popular Posts by Year on Somervell County Salon

 You! Leave a Comment! You Know you Want To!
You must be a registered member to comment on the blog.
Your first post is held pending approval to make sure you're not a spammer bot

 Not registered? Or you can login!

LOGON - Name:Password:

New poster comments are moderated, meaning they won't show up until approved... or not.  Be patient-we have lives outside this blog, so it might take awhile You want to be rude? totally stupid? inappropriate? Racist? Bigoted? Flame war baiter? Your post may be deleted. Spammers or people posting pretend interest comments but really wanting to hawk their latest book or sell stuff or govt propaganda flacks won't see their posts published. Comments do not necessarily reflect the viewpoint of the site owner(salon).
If you have a problem with logging in or registering, please speak up right away. Love your comments. Oh, except spammers
More on commenting

Click Here for Main Page

Latest Posts

Most Popular Posts by Year on Somervell County Salon
salon 10/19/2018

What's Going on with the Turk v Ray Reynolds and Somervell County Hospital District Lawsuit? (Glen Rose Medical Center)
salon 10/19/2018

Republican Lies and Hypocrisy- in COURT to KILL ACA Including Pre-Existing Conditions
salon 10/19/2018

Ted Cruz-Tough as Texas? Bwahahah
salon 10/9/2018

Brett Kavanaugh is supremely the wrong person to be on SCOTUS
salon 10/7/2018

Video- Former President Barack Obama on the State of our Democracy
salon 9/7/2018

More Blog Headlines


salon > Hi, Peter. Long time no hear. The theme of my post, above, is about religous people who believe that god put trump in office. Do you have a specific opinion on that?  On your general comme.... (What is WRONG with ANY Religion that believes a god put a man like Trump in power)

pstern > What a nation of lost souls we have. Determined people are doing whatever they want...which is to create chaos and to bring down our government. While our government is a mess, it's still the b.... (What is WRONG with ANY Religion that believes a god put a man like Trump in power)

salon > From the Dallas Observer in 2015 Prestonwood Baptist Church and its supporters have never liked talking about the convicted pedophile who once worked there and have let that be known in very pointe.... (Prestonwood Baptist Church in Dallas Back in the News-Internet Sex Sting with Pastor)

salon > Saw this video today   (Pesky Black Buzzards)

Home | Blog Home | About | News | Piazza | Calendar | Audio/Video/Open Rec | Search
Write!  |profile | quotes |
top Daily | top Weekly |top Month | top Year | Top All! | archives | subscribe RSS