Credit Investments of Warren Buffett

What is the greatest investor doing in this credit crisis? He is spending most of his cash on corporate debt or preferred stock. We don’t see him making large company acquisitions as of yet. He sees value in debt not equity.

Table: Warren Buffett’s investments in credit since the start of credit crisis:

This speaks volumes!

Buffett is not alone in going where the value is. The world’s richest person by some ranking, Carlos Slim, also likes this idea. He recently lent $250 M convertible debt to New York Times company at 14%. Another shrewd investor, Carl Icahn, was reported to be collecting the debt of MGM at 38 cents on dollar in March ‘09.