Berkshire Hathaway’s primary hunting ground for investments will continue to be the United States, Warren Buffett said at the Shareholder Meeting on May 4. "If we do make a big investment, it is likely to be in the United States," said Buffett. “We have preferred to largely invest in the US, companies here are unmatched. We did commit to Japan because it was overwhelmingly compelling.”
Buffett was addressing a question about whether Berkshire Hathaway would consider investing in companies based in China and Hong Kong. He said, "United States rules, weaknesses, and strengths...but I don't have the same feeling for economies around the world. I don't pick up on other cultures that well."
He said that Berkshire Hathaway invests in US-based companies that conduct business globally. For example, Coca-Cola, a preferred soft drink company, operates in over 170 countries, said Buffett.
Follow our live blog on Berkshire Hathaway shareholders meeting
Buffett also expressed his extreme satisfaction with their investments in Japan.
Last year, Berkshire Hathaway increased its stakes in four Japanese trading companies: Marubeni, Mitsui, Mitsubishi, and Sumitomo. Buffett’s rationale for investing in Japan was undervaluation. These companies consistently generate cash flows and reward shareholders through dividends and buybacks.
Investments in China
Despite Berkshire’s recent investments in Japan, Buffett has largely remained focused on the domestic market. One significant exception was his 2008 investment in BYD, which was expected to become one of the world’s largest automobile makers. However, Berkshire Hathaway has gradually reduced its stake in BYD. According to media reports, the company's stake in BYD decreased from 20.7 percent in August 2022 to 7.98 percent in October 2023.
BYD is the top carmaker in China by overall sales. However, the company has been struggling to meet its targets due to a global slowdown in EV sales growth and issues specific to BYD.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
