Warren Buffet, The Richest Man Alive, Was Buying Everyone's Debt During The Financial Crisis | Exploring Markets

Warren Buffet, The Richest Man Alive, Was Buying Everyone's Debt During The Financial Crisis

This will define his genius forever.

Warren Buffett bought loads of debt from General Electric and Goldman Sachs. Then, later, it was from Tiffany Diamonds. As the WSJ reports:
Warren Buffett must be in a romantic mood ahead of Valentine's Day.
Mr. Buffett's Berkshire Hathaway bought $250 million of debt from jewelry giant Tiffany & Co. The debt sports a yield of 10%, according to Tiffany's Securities and Exchange Commission filing. New York-based Tiffany said it will use the proceeds to refinance existing debt and for general corporate purposes.
This guy will come out of the 2007-09 financial crisis very rich. Here is a promient paper about Buffet, Berkshire, and his market moves. Written by a couple college scholars.
The gold play is a fool's errand at this point. We are stuck in a massive deflationary cycle. Do you see Warren Buffett touting gold? Nope. He is buying corporate debt like a wild man at this point. He isn't playing the "guess the equity price" game; he is playing the "I bet these guys will still be in existence in 3 years" game. Granted, he is getting a juicy yield for biding his time and having more money than God, but still, look at what people are doing, not what they are saying. In the past few months he has bought debt in Tiffany and Co. (TIF) (10% yield), Goldman Sachs preferred with 10% yield, and high yielding debt in General Electric (GE), Swiss Reinsurance (SWCEY.PK), and Harley Davidson (HOG). His yield and bonds will do well in a deflationary time, and he has the kicker to convert to stock in all his deals.