On the evening of May 4th Beijing time, the global "Investment Spring Festival Gala" - Berkshire Shareholders' Meeting was held with a heavy weight. During the Q&A session of this shareholder meeting, the investment attitude of this "Omaha prophet" towards the US overseas market became the focus of market attention.
During the Q&A session, several shareholders asked Buffett if he was interested in investing in China, India, and Canada. Buffett stated that the United States would still be Berkshire's main investment battlefield - given his limited understanding of markets outside the United States, he did not expect to make significant bets outside the United States.
However, it is worth noting that Buffett specifically hinted that given that Canada's economy is similar to the United States, he may invest in Canada.
The United States will continue to be the main investment battlefield
The first question at the shareholder meeting is about how Buffett views overseas investment opportunities. A shareholder from Hong Kong, China asked: Buffett has previously invested in Chinese company BYD, will he continue to invest in Chinese companies in the future?
Buffett emphasized that the United States remains Berkshire's main investment battlefield:
"Our main investment target will be located in the United States, which we firmly believe... I understand the rules, weaknesses, and advantages of the United States, and I don't have this feeling in other parts of the world."
He pointed out that Berkshire wants to focus on companies with global business: "You see, the companies we invest in, such as Coca Cola or American Express, are expanding their business globally. Companies like American Express or Coca Cola, which have business worldwide, are difficult to find globally, and this is a global consensus."
He specifically mentioned Berkshire's previous investment in BYD: I think the investment in BYD is similar to the investment we made in Japan five years ago: we quickly invested in five companies in Japan, and you rarely see us making such investments overseas in the United States, even though we are participating in the world economy through these companies... We have also considered many overseas companies such as BYD, but Berkshire currently does not have such plans, of course, this is not impossible& Amp; Quota;
Since its first reduction in BYD on August 24, 2022, Berkshire Hathaway has reduced its stake in BYD several times in the past two years. As of the end of October last year, its shareholding has declined from 19.92% in August 2022 to 7.98%.
India has many opportunities, but we still don't have enough understanding
When it comes to India's investment prospects, Buffett also expressed a similar view:
"We are paying attention to India, and I believe there are plenty of opportunities in India. But my question is, do we have an advantage in our understanding of India? Is our investment something India wants us to participate in? Perhaps there are some opportunities in India that we haven't noticed yet. In the future, I think we may find some opportunities, but now our question is, can Berkshire pursue this opportunity?"
He emphasized again that he still lacks sufficient understanding of the Indian market: "Our investment in Japan is good, and there may also be such opportunities in India. But whether Japan and India are the same, especially in terms of cultural differences, there may be some differences. And I am currently unable to give a good answer to this."
Considering investing in Canada
Although Buffett emphasized his lack of understanding of markets outside of the United States, Canada seems to be a surprise.
Buffett pointed out that Canada and the United States have similarities in business, so "we don't feel any discomfort investing funds in Canada in any form... In fact, we are currently focusing on a goal."
"There are many countries that we are completely unfamiliar with," Buffett said. "So, although Canada's economy is not exactly the same as the United States, it is a major economy that you have confidence in operating there, which is great."
Buffett did not disclose which Canadian company he was interested in, nor did he disclose whether the company was listed or private.
"It's obvious that Canada doesn't have as many big companies as the United States," Buffett said. "There are some things we can do well, and Canada can benefit from Berkshire's involvement."