Warren Buffett says most recovery so far has been in Berkshire’s manufacturing businesses

By Josh Funk, AP

Buffett: manufacturing is leading the recovery
OMAHA, Neb. — Billionaire Warren Buffett says the American economy is definitely improving with most signs of life coming in manufacturing businesses.

Berkshire Hathaway’s CEO met with reporters Sunday, a day after his annual shareholder meeting drew about 37,000 people.

Buffett says Berkshire subsidiaries like its Marmon manufacturing conglomerate and Iscar tool making company have improved sales, and there has been some increase in luxury goods sales at Berkshire’s Borsheims and Helzberg jewelers.

But he says the housing market has yet to improve significantly because of excess inventory.
Buffett says several of Berkshire’s roughly 80 subsidiaries have started hiring workers, so he’s confident the unemployment rate will improve. But he admits the hiring is slow so far.

On the Net:
Berkshire Hathaway Inc.: www.berkshirehathaway.com
THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

OMAHA, Neb. (AP) — Billionaire Warren Buffett says he’s studied the civil fraud charges against investment bank Goldman Sachs, and has no problem with the transaction involved.

Berkshire Hathaway’s CEO Buffett said Sunday that he thinks he understands the allegations against Goldman better than most people, and he doesn’t believe the Abacus deal constitutes fraud. Buffett, who invested $5 billion in the bank in 2008, has been one of Goldman’s biggest supporters before and since the SEC filed its civil lawsuit.

Buffett says ACA, the bond insurer involved in the Abacus deal with Goldman, was responsible for assessing the transaction’s risks, and that it shouldn’t have mattered that another investor was betting against ACA’s interests.

Berkshire Vice Chairman Charlie Munger says he believes Goldman is the nation’s best investment bank in terms of morality and competency. He says vilifying Goldman won’t solve the problems created by faulty regulations.