Buffett: US recession ‘very, very unlikely’
October 3, 2011Warren Buffett says Berkshire Hathaway has been buying stocks at bargain prices, including shares of his own company. Buffett revealed that Berkshire bought a net total of $4 billion worth of common stocks during the third quarter. That’s about as much as the company bought in the first half of the year. He told “Squawk Box” co-host Andrew Ross Sorkin, “The cheaper stocks get, the better I like to buy them, whether it’s our stock or somebody else’s.”
Buffett thinks Berkshire’s market price is very attractive, and the company has just begun to repurchase some shares under the surprise buyback program announced on Monday. Buffett wouldn’t reveal how much has been bought, noting the “paperwork was just completed” Thursday. It all depends on the price. “The cheaper it is, the more aggressive, generally, we will be buying. It’s just like any other stock.” Buffett says the buyback program should not be seen as a sign he’s pessimistic about finding potential acquisitions, and he’s still looking for “elephants” to buy.
The Omaha billionaire isn’t worried that his new purchases will be caught up in a double dip for the U.S. economy. He thinks “it’s very, very unlikely we’ll go back into a recession.”
Source: © 2011 CNBC. All Rights Reserved
