Doom & Gloom? Not for Warren Buffett. When (almost) everybody sells, he buys. Buffett's holding company Berkshire Hathaway Inc. announced today that it would invest $5 billion in Bank of America Corp. He got the stocks very cheap, the papers had plunged 50 percent from a year ago.
That separates Buffett from the hedge funds and the clueless masses of speculators. In the recent weeks both groups reacted like lemmings. They followed blindly the gloomy herd and dumped stocks with falling prices, a reaction to the speculations about an alleged double-dip recession in the U.S.
In contrast the legendary investor shows a long-term thinking. He demonstrates patience and confidence in the strength of the U.S. economy which shapes the business of the Bank of America.