Buffett Gives Big Thumbs Up To Munis
Municipal debt may not be the sexiest investment, but juicy yields are hard to ignore. Warren Buffett certainly didn’t. Bloomberg reports that Buffett’s Berkshire Hathaway Inc doubled its investment in municipal debt to $4.05 billion as of March 31 from $2.05 billion on June 30, 2008. Worth noting, however, that Buffett has cooled to the idea of his municipal bond insurance business, since he expects some state and local governments may be tempted to default on their obligations rather than raise taxes.