Bear Sterns (BSC), is spiking 10% on news Berkshire Hathaway’s (BRK.A) Warren Buffett is considering a 20% stake in the broker. True or rumor?
Sounds to me like the Countrywide (CFC) rumors a month ago. IF Warren is buying into Bear, it will not be with a purchase of common stock. Now that the news is out he just cannot do it. A 10% jump already illustrates the impossibility he faces in doing anything in public. What he may do is what I postured would be (and eventually was)a potential for Countrywide, although not by Buffett. A private transaction in which he injected liquidity into the broker and in return receive a convertible security that pays a nice fat dividend, at this point probably around 7.5%.
Gone are the days we can follow Buffett before he makes his moves. If Buffett was going to buy common shares, it would have been done already and we would not know about it until the SEC filing much much later.
If I was going to bet, this is just more smoke…
3 replies on “Buffett Buying Into Bear Sterns?”
I’m in total agreement Todd. You gotta love how there is absolutely no substance to these rumors. People just love to speculate about Buffett – and the media sources know his name will get readers attention so they publish it. Outrageous in my opinion.
I’m a little late-These rumors sure make the market seem toppy.Carl Icahn said we are on a precipace,I agree.QID which just paid me a nice dividend on my short play and others are a good insurance policy.
ike
andy,
thanks for the comment. what amazes me is folks still believe the rumors. you would think they would know better by now