Warren Buffet says he'll be buying more Australian shares, including in a bank

Warren Buffett. Bill Pugliano/Getty Images

Warren Buffet is going long some Australian stocks.

Buffet is looking to invest more in Australia after bagging 3.7% of insurer IAG for $500 million.

Buffet, said to be the 20th century’s best investor, says there’s money to be made in Australian equities.

“If we get something we feel comfortable with, we will stick with it for a very long time,” he tells the AFR.

His company Berkshire Hathaway will looking at banks, among other opportunities.

“If you come back in two or three years, you will find we have got four or five Australian equities,” he says.

“In looking at banks, I would say there is a good chance that five years from now, we will have bought one or more positions in Australian banks.”

Under the deal with IAG, Berkshire Hathaway will acquire 89,766,607 new IAG shares at $5.57 each.

IAG and Berkshire Hathaway have also entered into a 10-year whole of account share arrangement. Berkshire Hathaway will receive 20% of IAG’s gross written premiums and pay 20% of claims.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.