Buffett has long history of business with the Jews

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new york | Warren Buffett is staunchly agnostic.

Still, the billionaire investment guru, who earlier this month made big news when his Berkshire Hathaway corporation bought a $4 billion, 80 percent share in Israeli metalworks conglomerate Iscar, for years has been making his mark on the U.S. Jewish community back home — though sometimes in a roundabout way.

“Proportionally, if you look at the number of Jews in this country and in the world, I’m associated with a hugely disproportionate number,” Buffett, the second richest man in the world, said this week.

Among the first companies Buffett acquired after launching Berkshire Hathaway, the Omaha-based investment and insurance giant, was the Sun Newspapers of Omaha, then owned by Stan Lipsey, one-time chairman of the Jewish Press, Omaha’s Jewish newspaper.

“At the time, the Omaha Club did not take Jewish members, and the Highland Country Club, a golf club, didn’t have any gentile members,” Lipsey recalled. “Warren volunteered to join the Highland, to set an example of non-discrimination.”

Buffett happily recalls the fallout from his application.

“It created this big rhubarb,” he said. “All of the rabbis appeared on my behalf, the ADL guy appeared on my behalf. Finally they voted to let me in.”

But that wasn’t the end of the story. The Highland had a rule requiring members to donate a certain amount of money to their synagogues. Buffett, of course, wasn’t a synagogue member, so the club changed its policy: Members would be expected to give to their synagogues, temples or churches.

But that still didn’t quite work, Buffett recalled with a laugh, because of his agnosticism.

In the end, the rule was amended to ask simply that members make some sort of charitable donation, and the path to Buffet’s membership was cleared.

The Israeli government stands to reap about $1 billion in taxes on Buffett’s purchase of Iscar. Shortly after announcing the deal, Buffett said that a Berkshire subsidiary, CTB International, was purchasing a controlling interest in another Israeli company, AgroLogic.

In Israel — which Buffett plans to visit in the fall — the hope is that the deals will have longer legs: Buffett has not ruled out future purchases there and, considering his status as a leading investor, observers say others also may take a look at Israeli companies now that Buffett has done so.

“You won’t find in the world a better-run operation than Iscar,” Buffett said. “I don’t think it’s an accident that it’s run by Israelis.”

The Sun newspaper group was not Buffett’s only early purchase of a Jewish-owned company. In 1983, Buffett bought 90 percent of the Nebraska Furniture Mart from Rose Blumkin, a Russian-born Jew who moved to the United States in 1917.

In 1989, he purchased a majority of the stock in Borsheim’s Fine Jewelry and Gifts, a phenomenally successful jewelry store, from the Friedman family.

“He has many friends in the Jewish community,” said Forrest Krutter, secretary of Berkshire Hathaway and a former president of the Jewish Federation of Omaha.

Buffett’s former son-in-law, Allen Greenberg, is a Jew, and now runs the Buffett Foundation, much of whose work has dealt with reproductive rights and family-planning issues. Buffett’s personal assistant is Ian Jacobs, who goes by his Hebrew name, Shami.