Buffett sees opportunities in subprime business
NEW YORK, June 25 (Reuters) - Warren Buffett, chief executive of Berkshire Hathaway, sees some opportunities for investing in the subprime mortgage business, he told Reuters in an interview on Wednesday.
Buffett said Berkshire Hathaway had already made some subprime investments through its Clayton Homes manufactured housing unit.
“We have bought some subprime paper in the open market, as people have wanted to sell portfolios,” he said of the investments Clayton Homes has made to date.
Other investments are possible, he said.
“We listen to anything we hear about,” said Buffett. “If it is big and unusual, and carries the proper premium, we listen.”
Buffett, who is famous for investing in businesses in beaten-down industries, started up a municipal bond insurer earlier this year.
He said that unit might indirectly invest in some distressed areas, including subprime. “Some of that may be a factor in what we are doing in bond insurance — it is an indirect fall-out from that,” he said.
Buffett said last month that he was generally hoping to make big investment deals, “the bigger the better.” (Reporting by Lilla Zuill and Dan Wilchins; Editing by Maureen Bavdek and Lisa Von Ahn)
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