Warren Buffett - Part One

The second richest man in the world just bought a majority interest in an Israeli company. Earlier this week, Warren Buffett of Omaha, bought an 80% interest in the family owned Iscar Metalworks, located in the Galilee. The cost - $5 billion. The fact that the world’s most savvy investor chose Israel for his first overseas investment is most heartening. Israel has an incredibly talented work force and is home to many of the world’s leading companies. It’s nice to make the papers about something other than terrorism or the military.

But what makes this even more interesting to me as a Jew is the nature of the conversations leading up to the deal. The Wertheimer family started the company and has been wonderful to its employees, giving them not just job security, but educating them and providing for their families. Buffett heartily endorses such practices (even as many in the business world see these benefits as taking away from the bottom line) and has assured the Werthiemers that their policies vis-à-vis employees will stay. In a world where so many companies are taken over and gutted; at a time when downsizing and outsourcing have become household words, it is most satisfying to see that two leaders of industry did not need to sell out workers to make great profits and set high industry standards.

The Wertheimers were offered much more money by other potential buyers but they went with Warren Buffett because he assured them that he would not fire employees, and that they could continue their employee benefit programs as well as all the activities they do to support community in Israel. In remarks carried on Israel radio, Buffett said, “I can guarantee that that will not happen. You can broadcast that; you can have me sign it in blood. It doesn’t happen. It doesn’t happen in any of our companies.” In short, Iscar did not take the highest offer. They took the best one. This is one deal that makes me proud to be an American and proud to be a Jew.