Buffett Rules Out Double-Dip Recession Amid Growth

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Berkshire Hathaway Inc.

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Andrew Frye and Kelly Bit, On Monday September 13, 2010, 1:14 pm EDT

Warren Buffett ruled out a second recession in the U.S. and said businesses owned by his Berkshire Hathaway Inc. are growing.

I am a huge bull on this country, Buffett, Berkshires chief executive officer, said today in remarks to the Montana Economic Development Summit. We will not have a double-dip recession at all.
I see our businesses coming back almost across the board.

Berkshire bought railroad Burlington Northern Santa Fe Corp. for $27 billion in February in a deal that Buffett, 80, called a bet on the U.S. economy. The billionaires outlook contrasts with the
views of economists such as New York University Professor Nouriel Roubini and Harvard University Professor Martin Feldstein, who have said the odds of another recession may be one in three
or higher.

Ive seen sentiment turn sour in the last three months or so, generally in the media, Buffett said. I dont see that in our businesses. I see were employing more people than a month ago, two
months ago.

The worlds largest economy grew at a 1.6 percent annual pace in the second quarter, exceeding the median forecast of economists surveyed by Bloomberg News, revised figures from the
Commerce Department showed on Aug. 27. U.S. economic growth will slow to 2.5 percent next year from a projected 2.7 percent this year as unemployment above 9 percent tempers consumer
spending, according to the median forecast of economists surveyed by Bloomberg News this month.

Signs of Life

Buffett built Omaha, Nebraska-based Berkshire into a $200 billion provider of insurance, energy and luxury goods and services over four decades. The company cut about 20,000 jobs last year as
demand for its products declined.

The economy is still recovering and isnt likely to slip back into recession as signs of life appear in the U.S., Bank of America Corp. CEO Brian Moynihan said today at an investor conference.

Buffett, who spoke via video connection to an assembly in Butte, Montana, said U.S. banks were ready to boost lending and encouraged entrepreneurs to seek financing for their business ideas.
Berkshire is the biggest shareholder of Wells Fargo & Co., the top U.S. home lender.

Night and Day

Its night and day from a year, year and a half ago, Buffett said. I know Wells Fargo, they would love to have $50 billion more of loans now. Go in and talk to the banker.

Buffett amassed the worlds third-biggest personal fortune through decades of stock picks and takeovers. Berkshires stake in San Francisco-based Wells Fargo was valued at about $8.2 billion at
the end of June. Buffetts firm also owns $5 billion of preferred stock in Goldman Sachs Group Inc. and more than $1.5 billion of shares in U.S. Bancorp, according to data compiled by Bloomberg.

Berkshire gained $395, or 0.3 percent, to $124,372 at 12:48 p.m. in New York Stock Exchange composite trading. The stock has climbed about 25 percent this year, compared with a decline of 2.5
percent for Wells Fargo and a 9 percent drop for Goldman Sachs.

To contact the reporter on this story: Andrew Frye in New York at afrye@bloomberg.net; Kelly Bit in New York at kbit@bloomberg.net.