Warren Buffett, chairman of Berkshire Hathaway, may cash in from the credit market turmoil and worries surrounding the financial strength of bond insurers, including Ambac Financial Group and MBIA , the Wall Street Journal said in its online edition on Monday.
With more than $45 billion in cash on its books, a triple-A credit rating and years of experience insuring other insurers against catastrophic losses, Berkshire Hathaway is in a position to provide relief to some of these companies and could get into the bond-insurance business itself, the Journal said citing people familiar with the matter.
Recently, every major bond insurer has reached out to Berkshire , which owns a swathe of reinsurers such as General Re and auto insurer Geico, as a source of capital relief, those familiar with the matter told the Wall Street Journal.
"Fear has moved away from hurricanes and is now moving into the financial markets," the Journal said quoting Glenn Tongue, a partner at T2 Partners LLC, a New York hedge fund that owns Berkshire Hathaway shares.
"Warren Buffett can make a lot of money from fear."