Friday, February 13, 2009

Warren Buffett Buys Tiffany's Bonds

Warren Buffett has officially turned the corner and while (temporarily) giving up on equities, he has gone full bore into debt. His latest private purchase, after the recent foray in Harley-Davidson, is Tiffany's, more specifically $250 million of 10% Notes which mature in two equal installments in 2017 and 2019.

While Harley Davidson stock spiked on the news, it is unclear if Warren is buying bonds in semi-distressed names with the hopes of eventually equitizing his claim through a bankruptcy or comparable reorganization, thereby acquiring the company's equity for free.
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Anonymous said...

he also bought $400m in Vulcan materials last week. for whatever reason not a lot of media outlets bothered to mention this.

though the release doesn't say who the bonds were issued, vmc mentioned it on their eps release conference call.