This just in from the ‘no surprise’ department, Warren Buffett’s conservative, long-term approach to value investing has distressed mortgage lenders and other financial firms knocking at his door to sell him debt and other assets that have fallen through the floor in the last month.
Berkshire Hathaway is up 8.2% in the last 10 days, on rumors that everyone and their dogs are bringing deals to him.
The interesting thing about Buffett’s approach is why it’s considered so different and ‘against the crowd.’
<UPDATE> One thing I can’t get over when I read this article is the simplicity and wisdom of the BH policy of “we don’t buy in auctions.” Totally makes sense–a great way to overpay for something is to buy it at auction. Maximum sellers, competing on price–econ101 formula for overpaying.
Buffett looks like a genius when in fact it’s just discipline–don’t participate in buying processes that skew towards overpaying. Makes you wonder how so many companies justify participating in auctions to buy companies…