Buffett: Japan Presents 'Buying Opportunity'

There’s no need to panic about Japanese markets post-earthquake, says Warren Buffett: Such cataclysmic events often create a “buying opportunity,” he tells Reuters from South Korea. “It will take some time to rebuild,” but the market plunge “will not change the economic future of Japan.” Put it this way: “If I owned Japanese stocks, I would certainly not be selling them.”

A Hong Kong investor agrees: “I saw lots of buying last week by overseas investors,” notes the Asian equities boss. “I tend to agree with Mr. Buffett for the long term. I suppose the economy will be weaker over the short term but reconstruction spending will eventually help.” And there will be plenty of that: The World Bank today said it expected the 5-year reconstruction effort to cost as much as $235 billion. Shares of Japan’s top home construction firm have already skyrocketed, the New York Times reports. (More Warren Buffett stories.)