Friday, December 28, 2007

Buffett to Start A Bond Insurer

Warren Buffett, seizing a chance to profit from turmoil in the nation's credit markets, is starting up a bond insurer that aims to make it cheaper for local governments to borrow and promises to be a tough competitor for the industry's embattled incumbents.

The billionaire investor's Berkshire Hathaway Assurance Corp., set to open for business today in New York state, will guarantee the bonds that cities, counties and states use to finance sewer systems, schools, hospitals and other public projects.

The new venture, backed by an almost-certain triple-A credit rating, is likely to be cheered by municipalities and municipal-bond investors because it will offer them an alternative at a time when other bond insurers' ratings look wobbly.



2 comments:

Jango said...

David,

As its nearly the end of the year, I was wondering if you could put out your views on portfolio returns ? How to calculate it and what softwares/sites are out there which could benefit an ordinary value investor ?

Have a prosperous 2008 !

J

Dah Hui Lau said...

Hi J,

Sorry, I don't know what software to recommend. Also, I don't have a view on stock market return. I don't know whether it is heading.

To keep track of your portfolio, just use simple excel.

Sorry, I can't be any helpful.

Happy New Year to you too.

David

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