Warren Buffett touch for Oz?

In Insurance on 19/06/2015 at 4:47 pm

Mr Buffett’s A$500m ($386m, £247m) investment in one of this country’s biggest insurers, Insurance Australia Group (IAG), has spurred speculation about other companies he might invest in.

Mr Buffett does not like taking risks, a senior analyst at investment research firm Morningstar, David Ellis, told the BBC.

“He wants a reliable return, and that’s what the Australian market gives him. It is very mature and well run,” explains Mr Ellis about why the American investor from Omaha has invested in IAG.

  1. Buffet loves insurance companies or at least a good one that throws up a lot of cash flows. He uses that constant cashflow to be patient in his other investment picks which is what underpins his track record. Kinda like Temasek except he has to go find those cashflow while HoHoHo gets it free of charge. Massive difference!

    • Can go wrong. When I first entered financial services in 85 in sydney, FAI and its boss Larry Adler were hot. He had a life isc co and used the premiums and float to fund raids etc. It was even dual listed in S’pore. He died, and it turned out plenty of accounting irregularities. I’m surprised you and yr TRE friends don’t compare Temasek to FAI. )))))))

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