Iscar, by contrast, has offices or agents in 52 countries, making it far from dependent on the Israeli economy.

ECONOMIST: Israel over-enthuses at Warren Buffett's latest deal

Mr Buffett liked Iscar's steady long-term growth, its international reach, its investment in people and its close-knit, no-nonsense management style.

ECONOMIST: Israel over-enthuses at Warren Buffett's latest deal

Eitan Wertheimer, the son of the founder of ISCAR, the Israeli machinery manufacturer - who is now president of the company - tells the same story.

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He is, of course, extrapolating from the current condition of the 70 companies Berkshire Hathaway controls, including Burlington Northern, a slew of utilities and Iscar, the giant global machine tool company, headquartered in Israel.

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And Iscar is just the kind of firm that the homespun Mr Buffett understands and has often bought in the past: one built from scratch by the application of simple principles and honest hard work.

ECONOMIST: Israel over-enthuses at Warren Buffett's latest deal

Its chairman, Eitan Wertheimer, said he felt Iscar was reaching its limits as an Israeli firm and needed the backing of a big name for its own plans to break into areas like the American car industry.

ECONOMIST: Israel over-enthuses at Warren Buffett's latest deal

Among the current executives to whom Mr. Buffett has referred in emotional terms at least eight times, the one who scored the highest is Danny Goldman, chief financial officer of Iscar, Berkshire's Israeli-based cutting-tool division ("incredible, " wrote Mr. Buffett in his 2009 letter, for example).

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