Where Is Warren Buffett Investing His Money Overseas?

This is a sponsored post written by The Cheat Sheet on behalf of Nationwide®.

Currencies from around the world
International markets can prove to be fruitful for your business | Pixabay

Warren Buffett is one of the largest American bulls you’ll find. Earlier this year, the Oracle of Omaha called America the “mother lode of opportunity”, predicted the “dynamism embedded in our market economy will continue to work its magic”, and declared “America’s best days lie ahead”, all in his annual letter to shareholders.

Who can blame him? While living in the United States, Buffett has become one of the wealthiest people alive. Berkshire Hathaway, the conglomerate Buffett first took control of five decades ago, is consistently one of America’s most valuable companies by market capitalization. The company’s investment portfolio bleeds red, white, and blue with household names like Coca-Cola and American Express. However, that doesn’t necessarily mean Buffett avoids investing overseas.

Value has no boundaries. If the price is right, Buffett will make international deals that benefit Berkshire Hathaway and shareholders. This was seen in February, when his company announced a deal to acquire Detlev Louis Motorradvertriebs, a German motorcycle gear company, for more than 400 million euros ($452 million). Buffett even noted how he hopes the deal will lead to more acquisitions in the region.

“There is nothing like a deal to get people’s attention,” Buffett told The Financial Times. “This is smaller than something we would normally do, but it is a door opener. I like the fact that we have cracked the code in Germany.” He added, “Europe has hundreds of millions of people, high incomes, productive people, so it is a great place to be. The U.S. is my first love, but I see terrific possibilities for us in Europe.”

Over the past three years, international markets have woefully underperformed American markets, but the global economy goes through cycles. Today’s underperformance often leads to tomorrow’s outperformance. Investors seeking to diversify their portfolios and find value may want to follow Buffett’s lead and look for opportunities overseas.

You don’t have to settle on one company. Mutual funds allow individuals to gain broad exposure to international markets without the individual-company risk. As always, do your homework and keep your own risk tolerance in mind.

This is a sponsored post written by The Cheat Sheet on behalf of Nationwide®.

This information is general in nature. It is not intended as investment or economic advice, or a recommendation to buy or sell any security or adopt any investment strategy. Additionally, it does not take into account the specific investment objectives, tax and financial condition or particular needs of any specific person. We encourage you to seek the advice of an investment professional who can tailor a financial plan to meet your specific needs.