Unlikely Buffett Will Invest in Europe: Nigg

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Nov. 1 (Bloomberg) -- Vontobel Asset Management's Andeas Nigg discusses possible investment ideas for Warren Buffett's Berkshire Hathaway on Bloomberg Television's "The Pulse." (Source: Bloomberg)

Equity has a hefty amount.

We think is about 15 billion.

What any of that come to europe?

Good morning.

It is a question that many people are asking themselves.

I think it is not going to be easy because as you know, markets have had a strong rally and in the past some of the best transactions, berkshire hathaway and warren buffett have made.

You remember in 2008 when he invested in goldman sachs and ge.

It is not going to happen right now.

At the same time, we saw the heinz transaction later this year.

He may still find opportunities.

Opportunities where exactly?

I know you're saying that basically he has gone for distressed assets in the past third anything out there, if you look at spain or anything in europe that might be attracted to him, or will he stick to the big names that we have seen him investing within the united states?

We look at a screen and we look at some of the factors that he has use in the past such as higher return on a gritty, lower leverage.

And also he should be a decent size.

It doesn't really point you toward the periphery of europe.

It points to more toward the u.s. or the uk and maybe even asia, but that hasn't been the case.

I wouldn't really expect him to do transactions in that regard.

Also, like i said, he has shown in the past that he can be patient and so he knows better than anyone else that sentiment can change faster than we all like it too.

I wouldn't be surprised if he i just decide to wait for a better opportunity.

Way to pay dividend?

Or that the sellout of character?

Is something we should not really be focusing on?

That is a good question.

It is something he is not really been seen on during.

But if you think about the large cash he generates here in year out, -- he generates year in year out.

The stock prices went up quite a bit in the first half of this year, so i think it's something you should take into consideration.

If yesterday billion to hand out to shareholders, that would be a nice additional return.

That would ultimately be the cash that -- under us, give me a sense of there are opportunities in the uk.

We're talking about prayer for europe in continental europe reduces what you're alluding to that they're not stress enough but that they're not quality enough assets.

It is, indeed, it is also closer to home.

They speak the same language, exelon easy to do transactions.

Specially if you're thinking about something that will be integrated into berkshire hathaway.

I have no insights into which company that might be, of course.

As a look at where obviously financial and insurance is still where the bulk of the business is.

So i still think that is an area that you have to take into consideration.

In addition to that, i think otherwise industry that we ran, i noticed that the other stock,. there's not a uk team in that sense.

Undress, thank you so much.

-- andre seas, thank you so much.

This text has been automatically generated. It may not be 100% accurate.


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