There is a very interesting newsflash on CNBC in the last couple minutes. Speculation is that Warren Buffett is considering taking a 20% stake in The Bear Stearns Companies (NYSE:BSC). BSC shares are higher by about 11% on this news, as shares jumped by about 8% in a couple of minutes after the news came 
out.
If this news does indeed come true, it will be huge for Bear Stearns as well as its rivals in the investment banking industry. If Warren Buffett is willing to take such a huge position in Bear Stearns then that speaks to the confidence he has in the overall industry to rebound from recent turmoil caused by the fixed-income markets and the subprime mortgage meltdown.
The major market averages are all moving much higher after this newsflash broke on CNBC in the last 15 minutes. Investors clearly see any large buy from Buffett as a sign of confidence and a reason to buy equities. Stay tuned as to whether this speculation has merit.
» Stocks rally on GM news and Bear Stearns speculation from GrowYourFunds
This market recap will be shorter than GrowYourFunds RSS Feed Subscribers are accustomed to seeing from me, but I will be traveling tonight so my time is limited. The Dow rallied by nearly 100 points today, finishing up by 99.50... [Read More]
Tracked on: September 26, 2007 3:02 PM | Permalink to Trackback