Buffett: Investors shouldn’t buy, sell based on headlines

Associated Press

OMAHA, Neb.

Billionaire Warren Buffett said Monday that Europe will have a hard time resolving its fiscal problems because of the structure of the European Union and this weekend’s election results in Greece and France.

But he says the turmoil in Europe won’t keep him from investing. Buffett said Berkshire plans to add to its stakes Monday in two U.S. companies.

“I think the worst mistake you can make in stocks is to buy or sell based on current headlines,” Buffett said. He did not identify the two companies.

Buffett appeared on CNBC on Monday morning, two days after meeting with more than 30,000 people at Berkshire Hathaway Inc.’s annual meeting.

Berkshire’s chairman and CEO said Europe has “got a lot of problems. They’ll solve them, but not without a lot of pain.”

Buffett said part of the challenge is that the European Union’s 17 countries don’t have similar monetary policies. He said it’s not surprising that people in Greece and France voted against the pain of austerity.

He said he wouldn’t hesitate to buy a European business if he found an attractive one to add to Berkshire’s portfolio of more than 80 companies.