Warren Buffett to CNBC: ‘Elephants’ Hard to Find, Let ‘Zebra’ Get Away (CNBC)
Appearing live from Omaha on CNBC’s Squawk Box this morning, Buffett told Becky Quick he doesn’t have any “high probability” deals in the works now. While he’s not necessarily scared away by higher stock prices, they do make it harder to find a deal now than two years ago. Buffett said that of the 50 or so large companies that qualify as “elephants,” we would not want to pay a 20 percent premium for most of them. He also pointed out its easier to buy private companies. He doesn’t rule out an international acquisition, but said a purchase in the United States is more likely. Buffett also revealed to Becky that Berkshire had an “iron in the fire” within the last few days, but lost out to another buyer. Was it an “elephant” on the scale of Burlington Northern Santa Fe? No, said Buffett, more like a “zebra.”

Warren Buffett Sees Uneven Recovery (Reuters)
Buffett said that despite his “enormous respect” for the efforts of Federal Reserve Chairman Ben Bernanke to move the economy forward, more stimulus is not the answer now. “In the end, I don’t think we need more of that,” Buffett said in an interview on CNBC. Buffett said improvements in the business environment is likely in future months to be reflected by a decline in the unemployment rate, likely to the low 7 percent range by the November 2012 elections from 9 percent now. Activity is “probably closer to inching in most businesses” at Berkshire and in much of the economy, while others are “moving forward” and others are “stuck,” Buffett said.

Muni-Default Estimate: $100 Billion (WSJ)
The report, by David Nowakowski and Prajakta Bhide at Roubini Global Economics and released to clients Monday, says state and local debt problems aren’t “systemic” in nature, nor will they “infect the financial system.” Most of the defaults will occur among special government projects and revenue-generating entities that aren’t considered viable, it says. “Defaults will continue to be isolated events.”

Berkshire Hathaway’s NetJets Orders Up to 120 Bombardier Business Jets (Bloomberg)
The agreement, worth more than $6.7 billion at list prices, comprises 50 firm orders and 70 options, according to a statement carried today by Business Wire. It didn’t say how much Columbus, Ohio-based NetJets would pay for the aircraft, which will be delivered starting in the fourth quarter of 2012.

Harvard Cubs With $43 Billion Dwarf Their Former Endowment Home (Bloomberg)
Adage Capital Management LP, Charlesbank Capital Partners LLC, Convexity Capital Management LP, Highfields Capital Management LP and Regiment Capital Advisors LLC are all Boston- based investment firms run by former endowment managers at Harvard University. Since leaving the world’s richest school, in Cambridge, Massachusetts, they have climbed into the top ranks of hedge funds and private equity. Altogether the firms oversee more than $43 billion, exceeding Harvard’s $27.6 billion fund. All have beaten their investment benchmarks since inception.

Threezy Does It For Charlie Sheen (NYP)
Sheen’s “goddesses” yesterday gave The Post an exclusive look into their steamy triple-decker sex life — disclosing they all sleep together in one big bed, where they take turns in the middle…Asked if they have sex together, Rachel Oberlin purred, “We do whatever Charlie wants us to do. This is the type of lifestyle I’ve always wanted, and I’m thrilled with it.” Natalie Kenly cooed, “Our bed is big enough for all three of us, and we take turns sleeping in the middle.” She did note that there’s a second bed in the room so, “if someone’s really tired, there’s always a place for them to sleep in peace.” Continue reading »

$$$ Buffett’s Trust in Goldman Sachs Betrayed by Leak, SEC Says [Bloomberg]

$$$ Rajat Gupta: Bigger Than Madoff? [NetNet]

$$$ Charlie Sheen v Muammar Gaddafi: whose line is it anyway? [Guardian] Continue reading »