Sunday, October 21, 2007

Fox Interview With Buffett

In a broadcast exclusive with FOX Business Network’s Liz Claman, Warren Buffett talks about the housing market, selling his stake in PetroChina, the mystery currency he never announced until now and his own investments.

On taking stakes in home builders:

“I didn’t buy a share. I look at them. I look at their debt, their equities. I look at everything. I’m waiting until they’re under priced. That’s what I look for with any security. And, I don’t think they’re undervalued. Starting 30 minutes, ending 18 months ago – that year – we probably had more home builders offer to Berkshire where the managements wanted to see the business that I’ve ever seen in any industry. A significant percentage of the publicly-owned home builders, when their stock was flying high and their management was talking bullishly, were trying to sell their companies. Apparently they knew what was going on or likely to go on. Though, I don’t think they saw it coming as extensively as it did.”

On the Treasury’s bailout fund:

“Well, right now, it’s a mystery fund. When they announced it Monday they said more details would come. I haven’t seen any details so I don’t really know what they’re talking about. I don’t see anyway that pooling a bunch of mortgages, changing ownership is going to change the viability of the mortgage instrument itself. I’m withholding judgment on it and a little skeptical until I see the details.”

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