Two Ways To Play: Constellation Added to Buffett's Buffet
Strengthen your portfolio in good times and bad.
Constellation's stock had recently been under pressure because of financial market turmoil. This week alone shares of the largest US power marketer plummeted 58%. But the deal, which was actually struck by Berkshire's MidAmerican Energy Holdings, was put together in just the last two days, according to MidAmerican CEO Greg Abel.
Last May, Buffett said at Berkshire's annual meeting, "When there are market dislocations, we're always going to take advantage of them."
From the Bull Pen: Was the CEG purchase actually a bet on inflation? Bulls can use today's breather in Goldcorp (GG) as an opportunity. Sell stops can be set near $29 in the near term.
From the Bear Cave: Is the turmoil over? Did we reach the bottom? For those bearish, consider a downside play in American Express (AXP) as the stock rallies towards $40-41.
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