Warren Buffett to Europe: I want your business, but you can keep your bonds (IBM, GE, KFT, GS, BAC & BRK-A)

Warren Buffett is bullish on U.S. companies that do a lot of business in Europe, buying the stock of IBM (IBM, quote), Goldman Sachs (GS, quote), General Electric (GE, quote), Bank of America (BAC, quote) and Kraft (KFT, quote) for the holdings of Berkshire Hathaway (BRK-A, quote).  But he is not interested in bonds from Europe due to the lack of economic leadership.

In an interview with The Wall Street Journal, Buffett expressed discomfort with the response of Europe’s leaders to its economic crisis.  In a Wall Street Journal article by Arsuko Fukase, “In Japan, Buffett Talks Shop: ‘Big Investment’ Sought in the Resilient Country: Europe’s Are Troubling,” it was reported that Warren Buffett “won’t be making any big bets on European government bonds as the continent grapples with its debt crisis.”

As his reasoning is summarized, “European governments haven’t shown a willingness to do everything to necessary to deal with the problem, compared with the U.S. during the 2008 financial meltdown, which showed the ability and willingness to step the crisis..”

It should be remembered that in the depths of the credit crash in the fall of 2008, Warren Buffett made multi-billion investments in Goldman Sachs (GS) and General Electric (GE).  He recently did the same with Bank of America (BAC). 

In September 2008, he also wrote an op-ed for The New York Times, “Buy American: I am,” expressing his bullishness for U.S. investments.

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