Because I recently completed a book on Warren Buffett, and because Buffett is touring Europe right now, I've been asked a number of times why he is there. In particular, Fox Business asked me today if it made sense for Buffett to be trying to purchase European companies at a time when the dollar is so weak relative to the euro.

The first thing to keep in mind about Warren Buffett is that he does not actively seek companies to buy. Instead, he waits for good companies to contact him. He is in Europe just to make it clear that he is available and ready to buy if they are ready to sell.

Second, Buffett's European tour is not a bet on the dollar. He is still bearish on the dollar for the long term because he believes U.S. economic policy is geared to make the dollar weaker, but he also says he has absolutely no idea what the dollar will do in the short term. Just two weeks ago, he told shareholders he would like to diversify Berkshire's revenue stream. He wants more revenues from foreign economies. And because he has so much money to invest, he is focusing on Europe. He prefers to buy very large established family businesses.

Stuart Varney had a difficult time with my name, but he managed to pull it off at the end. Click here to view.