Warren Buffett, chairman of Berkshire Hathaway Inc., speaks during a press conference held at the Marriott Hotel in Omaha, Neb., Sunday. Buffett hinted at adding more Korean stocks to Berkshire’s investment portfolio, saying the Korean economy will perform well for the next few years. / Yonhap |
By Lee Hyo-sik
Staff Reporter
Warren Buffett, chairman of Berkshire Hathaway Inc., has hinted at adding more Korean stocks to Berkshire's investment portfolio, expressing an optimistic view of the country's economy. He reportedly has shares in some 20 companies here, including a 5.2 percent stake in the nation's largest steel maker POSCO.
Buffett told reporters Sunday (local time) that the world's 13th largest economy will better weather the current global economic downturn than other major economies, and will resume an ascent as soon as the world economy returns to normal. He held a press conference after Berkshire's shareholders' meeting in Omaha, Nebraska.
``The Korean economy will cruise smoothly over the next few years. In particular, the manufacturing sector has achieved an outstanding performance over the years and will do the same in the future. Berkshire is now seriously considering purchasing shares of several Korean companies,'' he said.
The legendary investor then said he bought shares in one Korean firm and put money into corporate bonds issued by POSCO in 2008, as part of his private investments. The steel maker issued dollar-denominated bonds worth $700 million late last year to raise fresh money amid the worsening credit shortage. He reportedly purchased $100 million POSCO bonds.
``POSCO is the world's best steel products maker. It has high productivity and efficiency, as well as practicing sound management. Currently, it is facing hardship at home and abroad amid the sluggish demand for steel products. But the difficulty will not last forever and good times will soon come,'' Buffett said.
He said there were many blue chip companies like POSCO in Korea, adding Berkshire is actively looking into top-ranking firms in several industrial sectors projected to expand at an explosive pace when global demand picks up.
``I think the Korean economy is going through a tough time right now. So is the global steel industry. But those who buy Korean stocks at the moment will realize huge capital gains later,'' Buffett said, presenting a positive outlook for Asia's fourth largest economy.
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