Sunday, May 07, 2006

Buffett and Iscar

Via the Angry Arab News, Warren Buffett invests big in Israel (my emphasis in red):

“U.S. tycoon Warren Buffett, who is acquiring 80 percent of Galilee-based Iscar Metalworking for $4 billion in his first significant deal outside the United States, hinted in an interview with Haaretz' TheMarker that he may buy additional Israeli companies.

The move is the third largest deal Buffet has ever made.”

and:

“The deal values Iscar, a leading private manufacturer of advanced cutting tools, at $5 billion and will make its owners, Stef and Eitan Wertheimer, the richest family in Israel.”

I don’t want to dump on Iscar, which probably is an excellent investment.  Leading-edge machine tool manufacturers are always going to be a good investment.  The timing and size of the investment, however, from politically-connected Buffett, is probably significant.  In particular, allowing Olmert to take some credit for it seems to be a clear indication of high-level American support for Olmert and his new ethnic cleansing plans.  It may be ironic that the founder of Iscar, Stef Wertheimer, seems to have the right kind of ideas for the future of Israel in the Middle East.

 

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