Marketplace helps you stay financially responsible all year, now we need YOUR help to keep our budget on track.
Donate NOW to help us hit our target of 2,500 Marketplace Investors by June 30!
Jeremy Hobson: Well as Europe’s debt crisis sent global markets on a roller coaster ride in recent months, many investors just got out of the way so they wouldn’t lose their money. Not Warren Buffett — his company, Berkshire Hathaway says it invested almost $24 billion last quarter. That was the most in at least 15 years.
Marketplace’s David Gura reports.
David Gura: Warren Buffet is what’s called a “value investor.” Jim Angel teaches finance at Georgetown.
Jim Angel: He likes to buy companies that have a strong franchise, or what the strategy types would call a “sustainable competitive advantage.”
Translation: companies that don’t face much competition. Last quarter he bought a big stake in Mastercard; he owns a lot of Coca-Cola stock; Burlington Northern Santa Fe Railway. Angel says Buffett is really good at buying low.
Angel: He made a big bet on Bank of America.
A $5 billion bet, back in August. The financial firm is still struggling and we’ll see what happens to it. But Angel says that epitomizes Buffett’s investment strategy, which is pretty basic:
Angel: Hm. They need money. They’re cheap. I’ll buy some.
Buffet doesn’t always bat a thousand — who does? But the 81-year-old investor has a really good track record.
In Washington, I’m David Gura, for Marketplace.
If you’re a member of your local public radio station, we thank you — because your support helps those stations keep programs like Marketplace on the air. But for Marketplace to continue to grow, we need additional investment from those who care most about what we do: superfans like you.
Your donation — as little as $5 — helps us create more content that matters to you and your community, and to reach more people where they are – whether that’s radio, podcasts or online.
When you contribute directly to Marketplace, you become a partner in that mission: someone who understands that when we all get smarter, everybody wins.