Warren Buffett 'tossed lifelines' to several blue-chip companies during the GFC - five years later, the payoff on those deals for the billionaire investor is...

Joanne Ma

Warren Buffett 'tossed lifelines' to several blue-chip companies during the GFC - five years later, the payoff on those deals for the billionaire investor is $US10bn and counting. This is a vivid illustration of one of Mr Buffett's favourite investing maxims: Be fearful when others are greedy, and be greedy when others are fearful. Starting with Mars in April 2008, big name companies began looking to Mr Buffett for funds as credit markets began to tighten in advance of the GFC. In 6 major deals, Berkshire invested a total of about $US26 billion. Few investors have been able to capitalise on the financial crisis of 2008-9 as expertly as Buffett. By comparison, the US government invested about $US420 billion through its Troubled Asset Relief Program and has so far collected dividend payments for a return of about $US50 billion, or 12%. (VIEW LINK)


Joanne Ma

investing global

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