Warren Buffett, head of Berkshire Hathaway, said Monday on his first trip to Japan that the debt crisis in Europe had revealed a “major flaw” in the eurozone, and that words alone would be inadequate to repair it.
Buffett, on a trip that had originally been scheduled for March but was canceled after the earthquake and tsunami, also spoke about Japanese businesses and investment opportunities in the country. Reuters reported that he said neither Japan’s earlier natural disasters nor the current Olympus accounting scandal would deter him from taking advantage of them.
Regarding the eurozone, he was quoted saying, “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 added that he could not foresee how the debt crisis might end, but said there were good valuations in a number of European companies.
“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,” he said. “We bought Tesco earlier. I could buy more if the price came down,” he added, referring to the British retailer.