Friday, October 03, 2008

Warren Buffet Is Today's JP Morgan
Over the past week Warren Buffet stepped in with capital for Goldman Sachs and GE. Buffet's Berkshire Hathaway is a large shareholder of Wells Fargo, so I guess Wells' bid for Wachovia had Buffet's approval. My gut, without reading any specifics, is that the Wells' acquisition of Wachovia is a better deal than the Citigroup deal. Buffet is getting good terms on his investments. But he is also counting on a successful resolution to the credit crisis, because even his good terms will be wiped out fast if the crisis is not resolved soon. I wonder what other smart investors have the guts to follow Buffet's lead.

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