March 3 - Investment guru Warren Buffett says he's likely to buy Bank of America stock, add to his stake in Heinz, and buy an energy company. Fred Katayama reports.
Investment guru Warren Buffett wants to invest in more American companies because that's where he says he finds the most opportunity. His latest annual letter to Berkshire Hathaway shareholders, pored over by investors looking for tips, says future investments will likely range from ketchup to banking to energy. The Oracle of Omaha says he's likely to buy $5 billion worth of Bank of America stock by exercising his options before they expire. He didn't say why. Even though the stock has tripled over the last two years, it's still trading at less than a third of its peak in 2006. He says he might boost his ownership in H.J. Heinz, the food manufacturer, saying that its earnings this year would be "substantial." Heinz is now private, but you can buy the owner of rival Hunt's Ketcup, Con Agra, which is down more than 15 percent this year. And Buffett will be on the prowl for energy companies. Praising his purchase of NV Energy with its potential in renewables, he said NV "will not be MidAmerican's last major acquisition." But for all his love of stocks, Buffett's advice to the typical investor: don't chase winners. Just buy a cheap S&P 500 index fund. He suggests Vanguard's.