Buffett's China win.

• Author: Pesek, Jr, William
• Position: Frontline

Warren Buffett, Sage of China?

It may be time to add this to the list of nicknames by which the Sage of Omaha is known. That's because the world's second-richest man made a big--and, as we learned last month, profitable--bet on China this year.

It all began in March, when Buffett told Berkshire Hathaway shareholders US stocks were too expensive. The search for cheaper ones brought a man not known for risky international plays to a surprising place: China. In April, he began acquiring shares in PetroChina, the nation's biggest oil producer.

Buffett's moves are often subject to banner headlines and copycat investing. Yet his bet on PetroChina inspired more intrigue than usual--and it may continue to do so.

Berkshire Hathaway is now PetroChina's third-largest shareholder with 13.35 per cent of its traded stock. That's stellar Hews fur Berkshire...