At the Berkshire Hathaway annual meeting this weekend, Warren Buffett explained how growing competition among SPAC funds for deals would lead to the industry’s demise, Guru Focus reports.
“It’s a killer. The SPACs generally have to spend their money in two years, as I understand it. If you put a gun to my head to buy a business in two years, I’d buy one,” Buffett said. “There’s always pressure from private equity funds…but it’s where the money is now and Wall Street goes where the money is. SPACs have been working for a while and if you secure a famous name on it you could sell almost anything.”
Still, the Oracle of Omaha has been criticized lately by some of his own investors as being out of touch with the times on a number of fronts. Read more.
