Global economy slowing says Buffett
New York, October 24, 2012
Warren Buffett sees clear signs that the global economy is slowing, although the US economy is "inching ahead" as other regions decline, the Berkshire Hathaway chief executive officer said on Wednesday.
Yet despite the weakness, Buffett said he was "salivating" to make another major acquisition, adding that two deals of around $20 billion each had fallen through this year.
In an interview on CNBC, Buffett said the rate of decline was larger in Asia than in Europe, although the Asian economies are declining off a higher base.
At the same time, he said Berkshire's US housing-related businesses were growing at double-digit percentage rates of late.
Buffett has maintained that the economy will not truly start to turn around until the housing market improves, and he said Wednesday that housing had clearly started to turn.
Berkshire is heavily exposed to housing construction, as it owns a brick maker, a carpet maker, a realtor and the largest builder of manufactured homes.
Yet even with growth from its existing portfolio companies, Berkshire is always on the hunt to expand by acquisition.
Buffett told CNBC: "I'm salivating" to spend some of Berkshire's $40 billion cash pile on a deal. At Berkshire's annual meeting in May, he said a $20 billion deal had recently fallen through, and on Wednesday he acknowledged a second one had come apart as well.
He did not give any indication as to what kinds of companies were involved.
In a wide-ranging interview from an event in Ohio, Buffett also said the best thing for the economy would be for US Federal Reserve chairman Ben Bernanke to stay on for a third term.
With the presidential race running neck-and-neck, there has been speculation of late that Republican candidate Mitt Romney, if elected, would seek a new Fed chairman when Bernanke's term expires in 2014. Buffett disagreed with the idea.
"I would vote for Bernanke again, and I'd get my kids out and everybody else to vote for him," he said. -Reuters
More INTERNATIONAL NEWS Stories
- Stolen passport holder on missing plane is Iranian
- China deploys 10 satellites to search for Malaysia jet
- Libya says halts tanker outside port; rebels deny it
- Libya orders military force to 'liberate' ports
- Big bananas: Chiquita, Fyffes merge
- Radar sweeps, dozens of aircraft, but no sign of plane
- N Korea tanker loads oil at Libya rebel port
- Gold drops as US growth optimism weighs
- Merkel raps Putin; Russia tightens grip on Crimea
- World 'at sea' over missing Malaysian jetliner
- Passports requiring probe were on Malaysia flight
- 40 killed in Yemen as Houthi fighters near capital
- Vietnam finds object in sea; search on
- $5bn poll spend to boost India economy
- Libya authorises use of force against Korean tanker
- Ukraine PM says he will go to US to discuss crisis
- Syrian journalist killed covering fighting
- Malaysian jet may have turned back before vanishing
- No sign of missing plane; Malaysia probes false passports
- Two Europeans not on board 'missing' Malaysian jet
- China draws red line on North Korea
- Saudi sentences three to death for 2003 bombing
- First bitcoin machine opens in UK
- US sanctions will boomerang, warns Russia
- China plans $50bn bank to fund projects
- Sony to sell Tokyo 'birthplace'
- Obama orders sanctions over Russian moves
- Crimea parliament votes to join Russia
- Arab League to be revamped
- 'Upskirting' is legal: Massachusetts court