Business sponsor Warren Buffet raised $10 billion as a lending profit on loans given to huge U.S. companies during the global financial crisis in 2008. These data were released by The Wall Street Journal on October 7.
According to this media source, the proceeds of Buffet’s sub-company Berkshire Hathaway from such loans run to 40% and the total amount is estimated at $25 billion. Moreover, The Wall Street Journal suggests that the investor’s total profit might expand even more with the lapse of time.
In particular last week, the largest food producer Mars Inc. paid off the loan of $4.4 billion that was borrowed from Berkshire Hathaway in 2008. It is estimated that Buffet gained the net profit at $680 million from this single deal.
The magazine notes that Buffet’s injections on the bailout loans market proved to be a lot more successful than the U.S. government’s investments. Under a special bailout program called Troubled Asset Relief, the U.S. Treasury Department allocated almost $420 billion to major crisis-struck companies and yielded $50 billion on these transactions thus making the profit of merely 12%.
Warren Buffet is consistently ranked among the world’s wealthiest people. At the last check by Forbes, his net worth is equal to $58.5 billion.