Buffet in Jerusalem

The Oracle of Omaha, who never leaves his town, is in Israel. Warren Buffett and Charlie Munger are both visiting their new property in Tefen, on the very hot Lebanese border. Buffet says that on the long term, Israel is the same risk as the United States. Interesting. Nice to hear. I like him.

He said on TV that he is expecting to receive more offers for investment in Israel. He said, however, that Berkshire Hathaway Inc. (NYSE: BRK-A; BRK-B), of which is the controlling shareholder, chairman and CEO, wanted to acquire a very large company. He added that Iscar Ltd. was an exceptional company, compared with its global peers, and he doubted that there was another company like it in Berkshire Hathaway’s portfolio. Berkshire Hathaway acquired 80% of Iscar for $4 billion three months ago.

“I and my partner Charlie Munger, had an opportunity this morning to visit two miracles: Iscar and the Tefen industrial park,” said Buffet at the end of his visit at the company. He expressed awe at Iscar and expressed his complete confidence that the company’s present management led by chairman Eitan Wertheimer and president Jacob Harpaz would continue leading the company to more achievements.

Buffett and Berkshire Hathaway vice chairman Charles Munger arrived in Israel yesterday only a few weeks after the second Lebanon war, which affected Iscar. They nevertheless expressed their strong confidence in the worthwhileness of investment in Israel. He said, “Things can change in our companies, but we’re here forever. Obviously, if you buy a company based in Israel, you take a risk, and see headlines from time to time. But Iscar will be here forever. Berkshire will be here forever, and Israel and the US will be here forever. There is no doubt at all about that.”