Billionaire investment guru Warren Buffett says the effect of the credit crisis on the US economy is "far from over".
Speaking at the start of his European tour in Frankfurt yesterday, the man dubbed the ‘Sage of Omaha’ says while most of the impact on stock markets may have already been experienced, the US will be feeling the pinch for some time.
“I don't think the effects of the credit crunch are far from over at all. I think there will be rippling secondary, tertiary effects,” Buffett says.
“I think the Wall Street crisis is mostly over although I don’t know. But I don't think we're halfway through or even a quarter-way through in terms of the effects on the economy.
“The initial effects are felt by people who did the silliest things, but the ripple effect is felt by people who might have done quite sound things.”
Buffett is in Europe on a "deferred shopping trip", looking at buying opportunities in the near future.
"There's no cookie cooking formula for buying businesses. Different businesses and sectors have different characteristics," he says.
"It's the boy that calls me for the date, I don't call the boy... I go to the office every day and hope that the phone rings. “
Buffett also reassured investors on the plan for Berkshire Hathaway when he eventually stands aside.
"We have three possible successors so we're in fine shape in that respect,” he says.IFAonline
What made financial headlines over the weekend?
Pensions neglect to be criminal offence
All-day event on 24 April
Consequences could be more severe than in stress tests
AFH has six segregated mandate funds