Warren Buffett is undoubtedly one of the most prolific investors in stock market
history... and for good reason.
During the first decade of the new millennium (2000-2010), Buffet's Berkshire Hathaway (NYSE: BRK-A) returned a blistering 76%. By comparison, the S&P 500 was down 11.3% for that period...
Performances like that are why I always like to keep an eye on where the "Oracle of Omaha" is placing his bets. After all, if Buffett can beat the S&P 500 37 out of the 45 years since he started Berkshire back in 1967, then it stands to reason he can do it again...
So after taking a look at some of Buffett's more notables moves in 2011 -- including a $5 billion investment in Bank of America (NYSE: BAC), and an $8.7 billion buyout of the specialty chemical company Lubrizol -- I think Buffett is getting ready to put even more of Berkshire's $37 billion in cash to work in 2012. Here's why...
Buffett still says stocks are attractive. According to Buffett's address to shareholders on CNBC last month, Buffett believes stocks will perform better than "bonds, gold or any other investment option over time". He followed by saying stocks still appear relatively cheap even after prices have improved from earlier this year.
But that begs the question... where will Buffett invest next?
After careful deliberation with my research staff, I think we may have found the answer in Japan.
The huge earthquake and tsunami that devastated the country last year hasn't soured Buffet's opinion on Japanese firms.
"There are lots of opportunities in Japan," Buffett said during a visit to the country to inspect a tool-making company owned by a Berkshire Hathaway subsidiary.