'Frozen' companies are not calling Berkshire Hathaway for rescue investments, Charlie Munger says

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Berkshire's phone has not been ringing with executives asking for rescue capital amid the coronavirus outbreak, Charlie Munger told the WSJ.

Usually, major declines give big investors such as Buffett and Berkshire an opportunity to buy into companies at a discount. Buffett made such investments in financials like Goldman Sachs and Bank of America amid the financial crisis more than a decade ago. However, Munger said they are being conservative this time around.

"We're like the captain of a ship when the worst typhoon that's ever happened comes," Munger told the paper. "We just want to get through the typhoon, and we'd rather come out of it with a whole lot of liquidity." The coronavirus outbreak has clouded the global economic outlook. Earlier this week, the International Monetary Fund said it expects a global GDP contraction of 3% this year.

Munger noted a recession is taking place, but added he does not think this downturn will turn into a depression.

 

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Miracle is going to happen

Get current bailout plan is creating a huge moral hazard.. this is going to be interesting to watch

They know he will swoop them up for song at a time of his choosing

😟😟

Berkshire cannot compete with the Federal Reserve. It offers way better terms.

They have the FED... NEW OWNERS

If the airlines that take loans from the government, and can’t pay dividends then Berkshire might see dividend income fall. Plus the decline in share prices might have a negative impact on its insurance reserves.

Yeah because they can get free money from the government why come to you

Yeah because they know the Government is dumb enough to give them free money. Anyone see the moronic airlines deal that was just handed out? Unbelievable.

No wonder with the price they would demand?

ForaMaia , we can´t take it anymore!!!

is he also frozen

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