Wilbur Ross to Buy Stake In Assured Guaranty
   (Wall Street Journal article online, subscription required - so here are some quotes

"Fund manager Wilbur Ross, who specializes in distressed sectors, will invest up to $1 billion in bond insurer Assured Guaranty Ltd."

"The decision to go with Assured Guaranty takes away for now one possible source of fresh capital for Ambac and a potential vote of confidence in the embattled insurer's prospects. It also means Ambac and MBIA -- already coping with the entry of Warren Buffett's Berkshire Hathaway into the bond insurance business -- will face a better capitalized competitor in Assured Guaranty as well."

"Assured Guaranty is in a good position to pick off business from its competitors, and Mr. Ross said on CNBC it may offer reinsurance, buy parts of its competitors' municipal bond portfolios or try to buy other companies outright. But it does face competition from the entrance of Mr. Buffett's Berkshire Hathaway."
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Note that Assured is the 5th largest bond insurer, but as Ross says, Assured already has the AAA ratings WITHOUT his money (capital).  The other companies need his money (capital) to KEEP their ratings (perhaps, says I)!!!  Therefore, the last "money quote" above, that Assured may just invest in one of the others bond insurers through Assured.

Oh and by the way, you may have seen that Berkshire did not do so well last quarter (but Warren never focuses on quarter or annual returns, remember ... Berkshire Hathaway is a long term, value investor!).  I have linked the Bloomberg.com article since a subscription is not required.

Berkshire sold PetroChina, also by the way (see the article for details), here's a great quote from Warren:

    "The party is over,'' Buffett said in his annual letter to shareholders. "It is a certainty that insurance industry           profit margins, including ours, will fall significantly in 2008. Prices are down.''

    Fourth-quarter underwriting profit from Berkshire's insurance business dropped 46 percent to $465 million led by     declines at auto insurer Geico Corp. and reinsurance units.

See the article for more, ... like that the stock price fell $250 ... to $140,000 (yes, PER SHARE).  Berkshire's annual report to come (always fun to view)!!