Summary
Financial crisis from Subprime mortgage, kind of housing loan, in the U.S have struck all over the world since last year. Almost all countries are suffering from a critical financial problem such as liquidity and flexibility.
In this situation, Buffett, the billionaire investor, announced on Wednesday that he would invest $3 billion in General Electric, the industrial giant that is also the nation’s largest nonbank financial company. The move comes eight days after he said he would invest $5 billion in Goldman Sachs, the world-wide investment bank.
Because of his decision, these two companies can have
credit in the market, since it' s the clue that they are still good and stable. And this is good for him too. Since last year those GE's shares have lowered about 33%, when compared with same period of last year. He could buy cheaper price than last year's. (10/02/2008, Buffett’s Bet on G.E.: Almost as Good as a Bailout , New York Times)
Personal Response
There is a maxim in Korea, which is "a crisis is an opportunity". Mr. Buffett is a person who fits perfectly in this expression. He is a very famous investor in stock market and one of the richest people in the world. He's been always seeking to find positive thing in anysevere situation. That's the way he walks through. I love his attitude. We have met a lot of problems since we were born and we'll certainly be faced with a certain snag.
However, if we have positive attitude like him, we can get through a trouble even if it's hard for us.
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