Warren Buffett: No Foe of Sovereign Wealth Funds

Warren Buffett, in his annual letter to shareholders:

There’s been much talk recently of sovereign wealth funds and how they are buying large pieces

of American businesses. This is our doing, not some nefarious plot by foreign governments. 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?

Especially, I might add, when those stocks aren’t bought on the secondary market, but instead are bought directly from capital-constrained banks, with the effect of helping to keep the US financial system functioning.

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