Buffett Poised to Clean Up in Bear Market

As the US teeters on the brink of recession and most investors remain sidelined by the credit crunch, Warren Buffett is poised to spend more than $40 billion to scoop up bargains. Berkshire Hathaway rose 22% over the last 12 months while other stocks sputtered, and now, Bloomberg reports, the company is one of the few with the cash on hand to profit from a bear market.

This week, Buffett committed $6.5 billion to help Mars overtake Wrigley, a deal that no banks or private equity firms were able to make. The world's richest man is now poised to continue the buying spree, netting substantial discounts in a tough market. "Buffett has the liquidity that others are lacking," said one fund manager. "The disruptions work in his favor. This is a perfect market for Berkshire." (More Warren Buffett stories.)