Warren Buffett Bought A $4 Billion Business Without Seeing It Because He Didn't Want To Travel Out Of The Country — 'I Don't Even Go To Iowa'

Warren Buffett, the chairman and CEO of Berkshire Hathaway Inc. and one of the most successful investors in history, shared a remarkable story about an unexpected acquisition in a 2012 interview with Economic Club President David M. Rubenstein.

Buffett recounted receiving a letter from an Israeli entrepreneur, ultimately leading to a $4 billion purchase.

"He wanted me to go see it. He told me what a wonderful plant he had and everything," Buffett said. Initially hesitant, he responded, "I'm not going to go see it. You know I don't go to Iowa."

Despite his reluctance, Buffett agreed to buy 80% of the company for $4 billion on the condition that he would visit the plant afterward.

Buffett humorously explained his aversion to business travel, saying, "I'm not going to start crossing oceans or anything crazy like that."

However, after the purchase, he did visit the plant in Israel.

"It was everything he said, and he was very pleased," Buffett noted. He admitted, "If I'd seen this thing, I'd have paid you more money. That's why I don't go visit businesses."

The investment in Iscar Metalworking has proven significant and lasting succe In 2013, Berkshire Hathaway bought the remaining 20% of Iscar, making it a wholly-owned subsidiary. According to CNBC, its valuation at that time was $10 billion. The interview also covered Buffett's investments in China.

He described reading a report about PetroChina China around 2002 or 2003.

"I put about $500 million into PetroChina. The government of China owned about 90% of it; we owned 1.3%, so between the two of us, we controlled the company," he explained.

Reflecting on this investment, he mentioned that the company, one of the major oil firms in the world, was valued at $35 billion in the market at that time.