Buffett eyes up Europe’s big fish

The Eurozone may be entering a recession, but Warren Buffett, the 'Sage of Omaha', sees only opportunities. The billionaire US investor touched down in Germany yesterday on a tour of selected EU countries in a search for undervalued and under-priced companies ripe for plucking. Buffett, who with a personal wealth of $68bn is ranked by Forbes magazine as the richest man in the world (although he only takes a $100,000 a year salary and lives in a modest family house), comes well funded. His company, Berkshire Hathaway, is currently sitting on a $35bn cash pile and his trip, which will also take in Switzerland and Madrid, has been billed as a "four-day shopping trip".

Buffett says he's targeting medium-sized businesses, particularly family-run concerns. "We're looking for companies that have at least $50m to $75m in pre-tax profit – the bigger the better,” he said. "It would be a good choice for them to contact us if they wanted to."

He added: "There are far more companies that would make sense for us to buy and for them to sell to us in Europe. In emerging markets there are going to be very, very few businesses that would be earning $75m – you want to fish in a pond where the fish are and Europe is a much better pond."

For those who take the bait, Buffett is renowned for taking a distinctively hands-off approach to his investments, leaving managements free to make their own decisions and holding his stock for the long term. But be warned: he loves a bargain and seldom pays market price for acquisitions.