Most of us took this week’s stock market as self-evident doom, but not Warren Buffett. He’s ‘never been better’. To Buffett, the S&P’s downgrading his company Berkshire Hathaway = opportunity.
While buying stocks at cut rates, Buffett is also planning on selling Berkshire Hathaway bonds to take advantage of cheap capital.
Buffett told CNN Money’s Term Sheet today that the sea of red all over the S&P 500 earlier this week is exactly what he looks forward to–a chance to buy low.
“The lower things go, the more I buy. We are in the business of buying,” he said.
It’s too bad that Buffett didn’t say exactly what he was picking up from the equities bargain bin. He’s not the only hotshot that sees value in stocks right now. Even equities-shy Donald Trump is jumping in, buying up cheap financials.
On S&P’s downgrade of US Treasuries, he said, “U.S. Treasuries are still triple-A in that there is no question that we will repay the interest and the principal. Every contract will be repaid. So our bonds are triple-A. Our currency, the dollar, is not triple-A. Our bonds are.”
On the Fed’s decision to keep interest rates low, Buffett said, as cool as always, “I don’t really think about things like that.”