Warren Buffett denies interest in Bear Stearns and Countrywide Financial

Posted Oct 20th 2007 11:40AM by Zac Bissonnette
Filed under: Rumors, Management, Berkshire Hathaway (BRK.A), Countrywide Financial (CFC), Bear Stearns Cos (BSC)

Speaking on Rupert Murdoch's new Fox Business Network, Warren Buffett said that he wasn't interested in Bear Stearns (NYSE: BSC), Countrywide Financial (NYSE: CFC), and had also liquidated Berkshire Hathaway's (NYSE: BRK.A) entire stake in PetroChina (NYSE: PTR).

For the full story with quotes from Buffett, check out this piece from Bloomberg.

It's no surprise that Buffett "didn't come close" to taking a position in Countrywide Financial, as such a move would have been a sign of a seismic shift in his investment philosophy. Had Warren Buffett bought Countrywide, I probably would have done a post "Is Bill Gates' bridge partner getting senile?"

When looking to make acquisitions, Buffett typically looks for two things: competent management and honest management. Countrywide's dwindling stock price speaks volumes about management's competence, and the SEC investigation of CEO Angelo Mozilo's stock sales tells you a lot about management's honesty.

Warren Buffett took a pass on Countrywide. If he can find something better, so can you.

Tags: Angelo Mozilo, Bear Stearns, Berkshire Hathaway, BRK, BSC, CFC, Countrywide Financial, inthenews, PetroChina, PTR, Waren Buffett