Warren Buffett Buying Stock Bargains with U.S. Recession 'Very, Very Unlikely'
Warren Buffett says Berkshire Hathaway has been buying stocks at bargain prices, including shares of his own company.
In a live interview on CNBC from the floor of the New York Stock Exchange, Buffett revealed Berkshire has bought a net total of $4 billion worth of common stocks during the quarter that ends today. That's about as much as the company bought in the first half of the year.
He tells Squawk Box co-host Andrew Ross Sorkin, "The cheaper stocks get, the better I like to buy them, whether its our stock or somebody else's."
Buffett says he thinks Berkshire's market price is very attractive, and the company has just begun to repurchase some shares under the surprise buyback program announced on Monday. Buffett wouldn't reveal how much has been bought, noting the "paperwork was just completed yesterday." It all depends on the price. "The cheaper it is, the more aggressive, generally, we will be buying. It's just like any other stock."
Buffett says the buyback program should not be seen as a sign he's pessimistic about finding potential acquisitions, and he's still looking for "elephants" to buy.
The Omaha billionaire isn't worried his new purchases will be caught up in a 'double-dip' for the U.S. economy. He thinks "it's very, very unlikely we'll go back into a recession... We're coming out of a recession."
Buffett tells us profits for Berkshire's businesses are improving and the company will invest $7 billion in its plants and equipment this year. Ninety percent of that money will be spent in the United States.
Buffett was at the NYSE for this morning's Opening Bell ceremony, marking the 50th anniversary of Business Wire, a Berkshire subsidiary.
Tonight he hosts a fundraiser in Manhattan for President Obama's re-election campaign.
Current Berkshire stock prices:
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