Buffett on hunt for value as euro area struggles
BILLIONAIRE investor Warren Buffett said Europe's debt crisis had shown up a "major flaw" in the 17-member eurozone system and it would take more than words to fix it.
"There is a major flaw in the euro system . . . I do know the system as presently designed has a major flaw and that flaw won't be corrected just by words," he said yesterday.
Mr Buffett, dubbed the 'Oracle of Omaha' for his long track record as a value investor, said he had no idea how Europe's sovereign debt crisis, which started in Greece two years ago and rages on, would end, though he noted there were good valuations among companies in Europe.
"Not in the debt space, but in the equity space there are opportunities. I can think of a dozen euro stocks that are attractive . . . there are stocks I like and wonderful businesses.
"We bought Tesco earlier. I could buy more if the price came down," said the 81-year-old chief of Berkshire Hathaway, referring to the British retailer.
Mr Buffett earlier told reporters during a visit to Iwaki City in northeast Japan that he also saw opportunities to invest in the country and was not deterred by either the March earthquake or a scandal engulfing camera and medical device maker Olympus.
Making a trip that he had cancelled in March due to the earthquake and tsunami, Mr Buffett said: "My view on Japanese people and Japanese industries is unchanged. We just had a demonstration over months that the tsunami did not stop Japanese business and the people.
"Olympus doesn't change my view at all on Japanese investments," Mr Buffett added, referring to a widening accounting scandal at the company, which has admitted hiding losses for decades through improper accounting, raising questions about Japanese corporate governance standards. (Reuters)