Warren Buffett’s holding company Berkshire Hathaway was reported to be fifth on the list of largest investors being helped by federal bailout funding.
Berkshire shares, which have been down 40 percent from last fall have risen sharply with the financial sector stock rally.
However, Berkshire Hathaway has not received any TARP dollars and the company holds stock valued at more than $13 billion in the top recipients of TARP funds.
According to the Houston Chronicle, Berkshire is at least twice as dependent on bailed-out banks as any other large investor.
“I am, to some extent, betting on the fact that the government will do the rational thing here and act promptly,” Buffett told CNBC after investing $5 billion in Goldman Sachs.
“If I didn’t think the government was going to act, I would not be doing anything this week.”
Buffett’s stake in the bailout has been closely watched and people can draw their own conclusions. Only time will tell what Berkshire awaits in the long run.
{ 4 comments… read them below or add one }
There are a lot of unflattering articles going around about Berkshire.
Of course Berkshire benefited from TARP, because its one the the biggest financial companies in the world.
You could turn this around by saying Berkshire’s investment of preferred stock in Goldman and GE saved the taxpayer money because these companies would have needed more TARP money without Berkshire’s investment.
Al, its the internet. Of course there’s going to be stuff that’s not suppose to be published but at the same time, what can we do as individuals but separate the good from the bad.
The article is somewhat true, somewhat false. True, Berkshire is benefiting indirectly through Goldman. On the other hand, GS is to be among the first to repay that money back. Or at least that’s what they announced.
Alex, Your right, but I try to comment when I see Berkshire unfairly criticized. (I also admit I am a shareholder) I’ll tell you why I get upset.
We’ve got corrupt politicians, stupid/greedy bankers, and ignorant borrowers.
Almost every large financial institution and insurance company has been devastated by whats going on (Merrill, Bear, Lehman, Citi, BAC, FNM, AXP, FHLMC, MBIA, AMBAC, Wachovia). Many of these companies will truly cost the taxpayers money. I fully admit that Berkshire has taken some hits, but given the situation, we should be praising it as a strong survivor in a brutal environment.
money runs like something no body knows… he being one of the richest men in the world i think he can help schorlaship…..
for people who are willing to further their education instead of investing in holy paul knows….
he is a good person so hope he gets to know this