1995: Would Berkshire invest outside of the US?

WARREN BUFFETT: The question about non-domestic operations, as you mentioned, we’ve got almost $8 billion in Coca-Cola and Gillette combined, and Coke has 80 percent-plus of their earnings from non-U.S. sources, and Gillette has maybe two-thirds or thereabout.

So, you can argue that almost 40 percent of the net worth of Berkshire — 35 to 40 percent — is operating outside the United States, just in those two investments alone.

In terms of buying a business outright, we don’t preclude buying a non-U.S. domicile business. But it’s not too likely that it’ll happen.

We’d like to do it, particularly if it were large and if we understood it. But are we as likely to get a fix on a Helzberg’s of Europe as we would a Helzberg’s in the United States? You know, I doubt it.

I just don’t know whether we would develop as much confidence in understanding the scene in which they operated, and understanding the management, and all that. But we might.

It would have to be a pretty simple business, and it would have to be a business where we thought we really understood the moat for a long time.

And it would have to be a business where we could establish a rapport with the management, despite coming from somewhat different backgrounds. It’s not impossible, but I would say it’s, you know, it’s less than likely.

Charlie?

CHARLIE MUNGER: I’ve got nothing to add.