Billionaire investor Warren Buffett told CNBC on Monday that despite the EU’s trillion-dollar bailout fund the crisis in the euro zone system has exposed the flaws of the 17-member currency union.
CNBC:“ The system as presently designed has revealed a major flaw. And that flaw won’t be corrected just by words. Europe will either have to come closer together or there will have to be some other rearrangement because this system is not working,” Buffett said in an interview.
Buffett also said he had no idea how Europe’s sovereign debt crisis, which has pushed sovereign debt yields to record highs, would end, though he noted there were good valuations among companies in Europe.
Reuters: “Not in the debt space, but in the equity space there are opportunities. I can think of a dozen euro stocks that are attractive … there are stocks I like and wonderful businesses.
“We bought Tesco earlier. I could buy more if the price came down,” said the 81-year-old chief of Berkshire Hathaway Inc, referring to the British retailer.
Asked whether the European Union would survive this crisis, the Oracle of Omaha said: “That’s in doubt now.”