Despite Market Turbulence, Buffett Remains Bullish

(August 11, 2011) — The world’s most powerful asset owner is bullish on stocks.

Warren Buffett — the world-renowned investor and CIO of Berkshire Hathway, also known as the Oracle of Omaha — continues to be optimistic, despite market turbulence. As investors panic following Standard & Poor’s credit downgrade, Buffett has aimed to quell fears. Speaking with Bloomberg and CNBC, Buffett expressed his confidence in the US market, reiterating his belief that the ratings agency made a mistake in lowering the nation’s credit rating.

“The lower things go, the more I buy,” Buffett told Fortune Magazine. “We are in the business of buying.” Referring to S&P’s decision as an unjustified downgrade of the US credit rating, he noted that he’s been purchasing equities and seeking to acquire big businesses.

“Up until right now, all of our businesses have been coming back — even Europe isn’t doing that badly — except for businesses relating to home construction which is on its rear end,” Buffett said.

In contrast, Bill Gross told Bloomberg earlier this week that S&P’s decision was a smart one.

“I think S&P has demonstrated some spine; they finally got it right,” Gross, manager of the PIMCO Total Return Fund, asserted during an interview on Bloomberg Television earlier this week, noting that the US has “enormous problems” in terms of its debt pile.