Warren Buffett. The most important thing you need to know about Israel today and how it has performed so far in the war with Hezbollah is Warren Buffett.

Say what? Well, the most talked-about story in Israel, before Hezbollah started this war, was the fact that on May 5, Mr. Buffett, the Berkshire Hathaway chairman and the world’s most successful investor, bought an 80 percent stake in the privately held Israeli precision tools company, Iscar Metalworking, for $4 billion — Mr. Buffett’s first purchase of a company outside America. According to BusinessWeek, as a result of the deal, Iscar’s owners were “likely to pay about $1 billion in capital gains taxes into the Israeli government’s coffers — an unexpected windfall. With the Israeli budget already running a $2 billion surplus, the government is considering slashing value-added tax by one percentage point to 15 percent.”

In May, Israeli papers were filled with pages about how cool it was that Israel had produced a cutting-edge company that Warren Buffett wanted to buy. It was being discussed everywhere, pushing the Tel Aviv stock exchange to an all-time high.

That is where Israel’s head was on the eve of this war — and it explains something I sensed when I visited Israel shortly after the fighting started. Nobody wanted this war, and nobody was prepared for it. Look closely at pictures of Israeli soldiers from Lebanon. There is no enthusiasm in their faces, and certainly no triumphalism. Their expressions tell the whole story: “I just don’t want to be doing this — another war with the Arabs.”

Israeli soldiers were napping when this war started — that’s why they got ambushed — for the very best reasons: They have so much more to do with their lives, and they live in a society that empowers and enables them to do it. (Unfortunately, the Buffett company is in northern Israel and had to be temporarily closed because of rocket attacks.)

Young Israelis dream of being inventors, and their role models are the Israeli innovators who made it to the Nasdaq. Hezbollah youth dream of being martyrs, and their role models are Islamic militants who made it to the Next World. Israel spent the last six years preparing for Warren Buffett, while Hezbollah spent the last six years preparing for this war.

“Israel was not prepared for this war,” said the Israeli political theorist Yaron Ezrahi. “It came upon us like the crash of a meteorite. ... The whole focus of debate in the country before this war was on withdrawal.” The Israeli Army had just taken on its own extremists, the settlers in Gaza, and removed them against their will, added Mr. Ezrahi, “and the country had just elected for the first time a prime minister who promised voters to unilaterally withdraw from the West Bank in return for nothing.”

In the end, Israel will do whatever it has to do to prevail. But what is so troubling for Israelis is that this w... [ Read More (0.2k in body) ]