Berkshire Hathaway (BRKA) has over $43 billion in cash on its balance sheet. It could buy most US public companies without borrowing a dime.

Berkshire’s chief, Warren Buffett could put his money to work anywhere. He owned a big piece of Petro China (PTR), which he sold off slowly for a large profit. The fact of the matter is that emerging markets like China and India would seem to offer the best opportunity to make money over the next decade. GE (GE), IBM (IBM), Wal-Mart (WMT), and other US corporate giants never talk about US expansion. It’s China, China, China.

Odd then that Mr. Buffett put $4.5 billion into Marmon Holdings. It owns over 125 businesses, and many of them do well overseas, but much of its large electrical components, water treatment, and retail services businesses depend on the US economy. And, Marmon, based in Chicago, is clearly and old-world American manufacturing and services firm.

The purchase, which will involve future payments based on earnings, is Berkshire’s biggest deal outside of the insurance industry, according to MarketWatch.

Berkshire could have put the money it is spending on Marmon into Citigroup (C), Merrill Lynch (MER), or another large US financial institution. He could shop overseas. Or, he could simply keep Berkshire’s money is safe short-term US paper.

Instead, Buffett made a long-term bet on an American-based company which is in fairly mundane business like plumbing and railroad cars.

Buffett is often right. If so, stocks in hundreds of US industrial and services firms, which are depressed due to economic concerns and foreign competition, are coming back.

Douglas A. McIntyre

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