Follow the Leader: Buy International

Warren Buffett said on Friday 'he plans to increase foreign earnings' at Berkshire Hathaway Inc.  (Public, NYSE:BRK.A). Masters, go ask Mom and Dad for that extra $136,000 and go buy a share.  Did you get it yet? While you wait on that, let's listen to words of wisdom from the best investor in the world.

"At Berkshire, we will attempt to further increase our stream of direct and indirect foreign earnings," Buffett said in his annual letter to Berkshire shareholders.

"So far, at least, a plunging dollar has not done much to bring our trade activity into balance," he wrote. "Our legislators should recognize the current imbalances are unsustainable and should therefore adopt policies that will materially reduce them sooner rather than later."

"This is our doing, not some nefarious plot by foreign governments," Buffett said. "Our trade equation guarantees massive foreign investment in the U.S. When we force-feed $2 billion daily to the rest of the world, they must invest in something here. Why should we complain when they choose stocks over bonds?"

Amen brother. So what has Warren been buying outside of the states?

In 2006, when Berkshire paid $4 billion for a controlling stake in an Israeli company, Iscar Metalworking Cos.  He's got $2.14 billion in South Korean steelmaker Posco (005490.KS), $1.58 billion in French drugmaker Sanofi-Aventis SA (SASY.PA) and $2.16 billion in British retailer Tesco Plc (TSCO).

Remeber that $3.3 billion stake in PetroChina Co (601857.SS), was sold last year, that allowed him to buy a few hotdogs.

Fellow Masters, quit fighting the current, if you buy a U.S. stock, make sure it has an international presence.  There's a ton of stocks trading that have been beaten black and blue that make big money overseas, Crocs Inc. (CROX) and Dell Inc (DELL) come to mind.  Looking for a safe bet?  Try Caterpillar Inc.  (Public, NYSE:CAT) at $73 a share and a 36 Cent dividend.  Happy Trading.

Article written by Eric Cheshier

Co-Founder of theStockMasters.com

If you liked this article, Eric Cheshier also contributes to the Master Picks Newsletter and the Quant Method , only available at WallstNewsletters.com