Seven To Ten

What is Warren Buffett thinking about Europe? The billionaire investor and Berkshire Hathaway chief will visit the Continent next month to scout out possible acquisitions of family-owned companies.

Angelo Moratti of Italian oil refiner Saras and Eitan Wertheimer of Israeli metalworker Iscar - a company Berkshire purchased in 2006 in its first overseas buyout - are arranging the trip, which comes as Buffet decides what to do with $40 billion in cash on Berkshire’s balance sheet.

Buffett said in Berkshire’s 2007 annual report that big acquisitions are necessary to keep returns up to par. “Though our managers may be the best,” he wrote, “we will need large and sensible acquisitions to get the growth in operating earnings we wish.”

Buffett has shown he prefers to buy into companies in which the owners are fully involved in operating the business, a preference that will no doubt help determine his itinerary next month.