Speculation has been rife since the sub-prime crisis from the past summer on what Buffet would do, sitting on an awesome cash position and of course a superb credit rating.
This drove BRKA from the low 100K$ per share up to near $150K by early December.
This move is a shrewd one–where Berkshire has a clear short-term defensible competitive advantage. It will be interesting to gauge it’s long-term defensibility.
I also like the move, as its an organic-growth strategy to take advantage of the mess in subprime. I prefer this far more than purchasing some Wall Street bank, e.g., Bear Stearns, which has been speculated on elsewhere.