Berkshire Hathaway Chairman Warren Buffett wanders the company trade show before his company's annual meeting in Omaha, Nebraska April 30, 2011. Dozens of BH companies had displays in the building next to the site of the meeting.  REUTERS/Rick Wilking  (UNITED STATES - Tags: BUSINESS)

Berkshire Hathaway Chairman Warren Buffett wanders the company trade show before his company's annual meeting in Omaha, Nebraska April 30, 2011. Dozens of BH companies had displays in the building next to the site of the meeting. REUTERS/Rick ... Wilking (UNITED STATES - Tags: BUSINESS) (Reuters)

Buffett Sees Potential in Detroit

By Business Leaders FOXBusiness

Billionaire investor Warren Buffett, who knows a thing or two about good deals, is touting the potential of beleaguered Detroit as a comeback story.

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At a small business initiative sponsored by Goldman Sachs (GS), Buffett on Tuesday compared Detroit to the U.S. auto industry, which just a few years ago seemed on the verge of collapse.

The industry, with the help of massive government bailouts to beleaguered Detroit-based car makers General Motors (GM) and Chrysler, has successfully rebounded.

Buffett, the 83-year-old chief executive of Berkshire Hathaway (BRK.A), says Detroit can do the same, according to a report in the Detroit Free Press.

“The resources are here to have a great, great city,” Buffett said at a news conference. “I have a real love for the city and the potential is huge. The United States with a flourishing Detroit is going to be a lot better than without one.”

Buffett said he would consider investing his own money in the right Detroit-based business.

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In July, Detroit became the largest U.S. city ever to file for bankruptcy, citing more than $18 billion in debts it cannot repay.

Buffett has teamed with Goldman in an effort to bring $20 million in loans to small business in Detroit.

“With practical business education and capital, small-business owners in Detroit have a much better chance of growing their businesses and contributing to the economic recovery of the city," Goldman Chief Executive Lloyd Blankfein said at the same event.

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