On Saturday, May 4th, the annual Berkshire Hathaway shareholder meeting opened in Omaha. Warren Buffett stated that Berkshire’s main investment focus will continue to be the United States, and he also expressed great satisfaction with the company’s investments in Japan. He responded to questions about investing in Chinese companies by emphasizing the continued investment in the US.
During the meeting, Buffett reassured shareholders that the executives set to succeed him are prepared for the transition, and he expects the group’s cash reserves to continue growing. This meeting marked Buffett’s 60th annual meeting since 1965, during which he transformed Berkshire from a bankrupt textile company into a $862 billion giant with holdings in companies like BNSF Railway, Geico auto insurance, Dairy Queen, and dozens of other enterprises.
One shareholder from Hong Kong inquired about Berkshire’s past investment in BYD and whether Buffett plans to continue investing in Chinese and Hong Kong companies. Buffett stated that major investments are likely to be in the US given the unparalleled companies there, but he also mentioned a commitment to Japan due to its overwhelming appeal.
Buffett highlighted his preference for investing in US companies that operate globally. He cited Coca-Cola as a popular soft drink company with operations in over 170 countries. Regarding the news of Berkshire selling about 13% of its Apple shares in the first quarter, Buffett affirmed that his view on Apple has not changed, with a 21% capital gains tax being a possible reason for selling.
He added that by the end of the year, Apple is “highly likely” to remain Berkshire’s largest holding, currently accounting for around 40% of its stock portfolio. Despite Buffett emphasizing US companies as the primary investment target, he mentioned the exceptional case of investing in five major trading companies in Japan since 2019, which he found compelling and swiftly executed.
The initial value of the investment in Japanese companies was approximately $6 billion. Buffett highlighted the rapid pace at which they made these investments, stating a reluctance to make significant commitments in other countries. Approximately 40,000 shareholders from around the world attended this year’s meeting, with Tim Cook, CEO of Apple, and Bill Gates, co-founder of Microsoft, present.
As of the end of March, Berkshire Hathaway had a record-high of $188.9 billion available for investments. Buffett hinted that this figure could reach $200 billion by the end of June. He noted their willingness to spend money, but only on ventures deemed low-risk that have the potential to generate substantial returns.
“We are more willing to primarily invest in the US, where companies are unparalleled. And we are indeed committed to Japan because it carries overwhelming attractiveness.”
“Investing in other parts of the world doesn’t give me the same feeling. I find it hard to comprehend other cultures,” he said.
“I’m pleased with our investment in Japan. It took us a year to allocate a small percentage of our assets to five very large Japanese companies. We bought it as fast as we could. We are less likely to make significant commitments in other countries.”
“American companies still remain the primary investment target. However, our investments in five major trading companies in Japan since 2019 are an exception that I found convincing.”
“We spent around $6 billion on the initial purchase of Japanese companies. We bought it as fast as we could. We are less likely to make significant commitments in other countries.”
“Even though American companies are still the primary investment target, our investment in Japan’s five major trading companies has been a convincing exception since 2019.”
“We spent approximately $6 billion on the initial purchase of Japanese companies. We bought it as rapidly as possible. Significant commitments in other countries are less probable.”
“With approximately 40,000 shareholders from around the world in attendance this year, Apple’s CEO Tim Cook and Microsoft co-founder Bill Gates were present at the meeting.”
“By the end of March, Berkshire Hathaway’s investment funds had reached a historical high of $188.9 billion. Buffett suggested that this figure might increase to $200 billion by the end of June.”
“We are willing to spend money, but only if we believe they are involved in activities with minimal risk and can make us a lot of money.”