Warren Buffett has been viewing the recent market turmoil as a buying opportunity, according to Fortune.
“Buffett is looking to buy stocks — oh, and apparently to sell Berkshire bonds too,” writes Fortune’s Andy Serwer, who recently interviewed Buffett. “Berkshire is reportedly taking advantage of record low rates and issuing bonds to raise dirt-cheap capital. For Buffett right now at least, this is not a time for fear. This is a time for action.”
Buffett told Serwer that “the lower things go, the more I buy. We are in the business of buying”. The U.S. debt downgrade hasn’t fazed him — in fact, he doesn’t think the downgrade was warranted. “U.S. Treasuries are still triple-A in that there is no question that we will repay the interest and the principal,” he said. “Every contract will be repaid.”
Despite all the economic fears hovering over the market, Buffett says the businesses owned by his Berkshire Hathaway have been showing improvement, signaling continued gains in the economy. He says he hasn’t yet seen data that would cause him to worry about another downturn. “Up until right now, all of our businesses have been coming back–even Europe isn’t doing that badly — except for businesses relating to home construction which is on its rear end. Business has been coming back steadily, even more than the mood of the public.” He added, however, that things could change if the events of the past week or so continue.