Buffett Buys $2.1 Billion in TXU Junk Bonds

Monday, 3 Dec 2007 | 7:49 AM ET
Buffett's Big Bet
Warren Buffett is placing a big bet on the junk bond market, with CNBC's Becky Quick

Warren Buffett's Berkshire Hathaway is paying $2.1 billion to buy TXU junk bonds
from Goldman Sachs, CNBC reported Monday.

Buffett told CNBC that the bonds are the only junk bonds he is interested in at the moment, adding that some recent issues give new meaning to the word "junk."

He called the move a bet on the utility business because of Berkshire Hathaway's

familiarity with the sector, the network reported.