Warren Buffett says to be fearful when others are greedy, and greedy when others are fearful.
When it was recently announced that Suntech, the largest producer of solar panels across the world, was about to go bankrupt, I never imagined that the current rumor was about to begin.
But as of right now, this is just a rumor…
If you were ever to describe Warren Buffett, being a bargain hunter certainly fits the bill. If there are a lot of people running away from a specific investment type, Warren Buffett is usually running toward that investment.
But he doesn’t just buy on impulse. He’ll make sure there is an undervalued business before he buys.
That’s why the current rumor going around is that Warren Buffett might be interested in buying Suntech out of bankruptcy. Again, this is not an official announcement. But the company’s stock has gone up about 50% over the last two days.
If Warren Buffett ever did choose to buy this business – and nothing is in the works as of yet – it would positively help solidify the solar industry.
It’s no secret that Warren Buffett already thinks highly of solar power and wind, and he looks at them as very attractive investments. He owns many wind and solar farms already.
If Buffett were to buy out Suntech, it would show that he believes this market is still profitable and that it will eventually bounce back over time.
If Berkshire Hathaway does make this acquisition, they would become the biggest producers of solar power all across the world. And it would happen overnight.