Wednesday, November 25, 2009, 6:38PM ET - U.S. Markets Closed.
Warren Buffet is digging deep into his pockets, making a $44 billion bet on the U.S. economy. Buffett's Berkshire Hathaway announcing plans today to buy the remaining stake in railroad giant Burlington Northern Santa Fe it doesn't already own for $100 a share in cash and stock, and assume $10 billion of debt.
Apparently, the Oracle of Omaha is fired up about the acquisition – the largest in company history. "It's an all-in wager on the economic future of the United States. I love these bets," he says.
This deal comes on the heels of a smaller multi-billion dollar merger. Yesterday after the close, Stanley Works announced it would buy rival toolmaker Black & Decker for $4.5 billion in stock.
Diane Garnick investment strategist at Invesco thinks this may be the tip of the iceberg. In this accompanying clip, (recorded before both deals were announced) Garnick says mega-mergers and smaller spinoffs are bound to heat up as companies search outside their own business for revenue growth in this sluggish economy. "Now is not the time for organic growth," she states.
Garnick predicts a majority of the activity will come from the technology, consumer staples and consumer discretionary sectors.
The market and Wall Street are certain to applaud the deals, but this kind of activity will likely result in more job cuts as companies eliminate redundancies created as a result of these mergers.
Here comes the inflation people. You only consolidate to kill the competition and raise prices. :D
I hope Sprint is next. It is a prime canidate for a buy out/merger etc...
She's talking about how these mega-deals are a good thing ... if you take two large companies and put them together, you end up with one large company and a lot of people losing their jobs. These M&A are not a great thing for the working person.... and with this shit economy, these activities could heat up ... not sounding good for the middleclass... but, what else is new?
Mr. Buffet...Can Always Sell The..."Locomotives & Railroad Cars"....For...Scrap METALS...When His..Investment...Goes Down The..."Toilet"....Ha,Ha,Ha,Ha,Ha,Ha.
Hi Rose, life ain't always that pretty, now is it? ..................It's a great comfort knowing Warren Buffet is there to give you company now. If you cared to know enough, people would accept to die just to touch this old dude, so this is your happy moment! ..............Pardon my French, Jim Cramer!
Warren has no choice but to turn his trash (cash) into an asset; cash is trash & doesn't produce a thing. Production is everything.... (Diane is my twin sister; but without the little hormone problem I suffer from and am sensitive about,.... so don't bring it up. Father says i am beautiful inside where it counts..............)
I love Diane Garnick, she's smart and beautiful (even in her current age). I wish I can have a wife like that.
Hey Thomas turn that frrown upside down cause if you owned stock in BNI you just made 30% overnight. AIG, the company everyone hates on this board made me about 17k this year. I love that company. It's all in how you look at it I guess. you can choose the doom and gloom path or join the game and trade to win. Popoy AKA Johhny Ilk in his former Tech Ticker life is spot on. he called for a 10,000 dow and all on here mocked him. He may not come off very clear cause english is not his primary language but the dude has made some good calls. Long BAC,UNH, and S or long enough to turn a profit at least. And before you bitches start compalining about day traders let me ask you how much you pay in taxes? Well I pay a small truckload and that goes to the economy so FU in advance. Have a nice day and trade away.
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Buffet is betting that: (1) Oil will go through the roof killing the trucking industry and reviving the railroad industry. (2) USD will fall apart, so it is better to preserve value in hard assets. With Fed directly buying up treasuries with printed money, there is no place to park money. While he says he is betting on US economy turning around, he is actually betting on the fall of the mighty USD and the US empire as we all know it.
did she actually imply that prices are coming down (this is a good thing for the unemployed american since they can buy that suit for the interview at a fraction of the price)? I'd like to know where and what types of consumer products are seeing price reductions.
Will someone PLEASE explain to this bimbo that her nauseating perkiness and that s**t-eating grin are inappropriate at this time?
Either Warren Buffett is a genius or he's getting senile, only time will tell.
Buffett bets on Buffett regardless of the economic situation. This has nothing to do with any patriotic sentiment ... Ms. Garnick is bullshitting everyone when she implies Warren bought for America... when the recovery actually happens, Warren is going to move 60% of the goods across America...
Did Diane Garnick happen to mention that of the companies that "beat expectations" WELL OVER 70% of those companies beat the estimates by reducing costs and NOT BY SALES REVENUES? Did she also mention the analysts purposely cut earnings as low as possible??? She is actually part of the economic problem we have today ... I'm telling ya, the people should be able to ask her questions instead of these puffballs from these guys....
I wonder if her carpet matches the drapes?
I just bought Park Avenue for $400.00 -- do I win??
Yahoo! Finance User - Tuesday November 03, 2009 12:21PM ESTWill someone PLEASE explain to this bimbo that her nauseating perkiness and that s**t-eating grin are inappropriate at this time? 1q+ So cause you are a miserable SOB you think we and she should be? I grin everyday. you should try it, it will improve your face value. and if you cannot maybe go down to your local hood and pick up some good grade A gange and that will help but don't be raining on my parade. you want to be miserable then do it alone loser.
Don’t worry, be HAPPY! Like Diane.
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Yahoo! Finance User - Tuesday November 03, 2009 11:50AM EST
Happy chick explains well. Job interview suit - cut 3 CFOs? now imagine the ripple effect, 3 CFO go for job interview - cut 9 CFOs, and on on.....untill no siuts are available for cheap...lol