Buffett bets heavy on expansion; discounts second recession
09 Jul 2011
According to billionaire Warren Buffett he was betting on continued economic expansion and did not expect a second recession.
''I would bet very heavily against that,'' Buffett told Bloomberg Television's Betty Liu on the ''In the Loop'' programme today after data showed slowing US job growth.
''How fast the recovery will come, I don't know. I see nothing that indicates any kind of a double dip.''
The unemployment rate rose to 9.2 per cent in June, the highest level this year, and hiring by companies was the lowest since May 2010, according to labour department data.
US employers added 18,000 jobs last month, which was much lower than projected by analysts.
''It means that we're still a ways off from getting to where we should be,'' Buffett said in the interview, in Sun Valley, Idaho. ''We're seeing growth around the world, but it's not mushrooming.''
Buffett's Berkshire Hathaway Inc added about 3,000 jobs last year after it cut 20,000 positions in 2009.
The company employed about 260,000 people across units such as insurance, shipping, consumer goods and energy, according to the company's statement in February.
Employment was up last year at Berkshire units which included car insurer Geico and railroad Burlington Northern Santa Fe, while staffing at carpet-maker Shaw Industries fell.