When Warren Buffett makes a move, others are sure to follow. As the world’s most successful investor – his company Berkshire Hathaway is worth $200bn (£128bn) – the decisions he makes have big ramifications for companies, industries and sometimes, for countries.
This week, it has been Australia’s turn.
Buffett’s A$500m ($386m, £247m) investment in one of this country’s biggest insurers, Insurance Australia Group (IAG), has spurred speculation about other companies he might invest in. Buffett does not like taking risks, a senior analyst at investment research firm Morningstar, David Ellis, told the BBC.
“He wants a reliable return, and that’s what the Australian market gives him. It is very mature and well run,” explains Ellis about why the American investor from Omaha has invested in IAG. In a video statement he made overnight, Buffett told his faithful following: “I’m 84 and this is my first investment in an Australian company.”
“I’ve been very derelict but it has been worth waiting for,” he said.
The recent decline of the Australian dollar may have prompted his move. (BBC)