The hottest Buffett is wise to invest in PetroChin

2022-07-27
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Buffett: it is wise to invest in PetroChina and BYD.

the annual "pilgrimage" ceremony of the global investment community is staged again. On May 5 local time, thousands of investors gathered again in Omaha, a small city in the central United States, to attend the shareholders' meeting of Berkshire Hathaway company headed by Buffett, the "stock god"

there are celebrities, the media, and many admirers of Buffett. It is reported that about 400 Chinese investors attended the meeting this year. Many of them bought a few A shares (nyse:brk.a) or B shares (nyse: brk.b) with a unit price of US $120000 in order to see the "God of stocks"

at the meeting, Buffett, who is over the age of eighty, and his investment partner charliemunger had a 6-hour Q & A with shareholders. When answering the question of the successor that shareholders are most concerned about, Buffett said frankly: who is the successor is not the key, and whether it can inherit and carry forward the company's value investment tradition is the most important. Earlier, it was reported that Buffett had identified the successor, but neither announced it nor disclosed it to the successor himself

in previous years, the general meeting of shareholders generally set up Buffett's media question and answer session, and a meeting will be held after the meeting. However, Berkshire Hathaway cancelled the two "low efficiency time of manual media sorting" which is also widely used today. According to his letter to the media, this is because Buffett wants to do more exchanges and interactions with investors. However, after the shareholders' meeting, Buffett still received exclusive interviews from 7 US media including CNN, CNBC and China first finance

China business news took the opportunity of an exclusive interview to raise questions about Buffett's investment in China. Buffett said that his two investments in PetroChina and BYD were very wise, and he continued to be optimistic about the stocks of Chinese companies

standards for investing in Chinese companies

China business: you said you were concerned about all kinds of global stocks. What kinds of Chinese stocks do you care about

Buffett: we don't pay much attention to Chinese stocks, because the companies we focus on are usually those with large capital scale, so we bought PetroChina stocks a few years ago, which was a very successful investment. We also bought BYD a few years ago. This investment is not over yet. We don't make many investment plans every year. We only buy one or two new stocks

: what factors do you pay more attention to when choosing Chinese companies to invest

Buffett: there is no difference in our criteria for choosing Chinese companies, American companies or companies from other countries: first, we should understand this company and its advantages; We hope that the company has long-term competitiveness, and the management of the company is honest, credible and stable; Under these premises, we will select those companies whose stocks have a comparative price advantage

: from IBM to Intel, you seem to have changed your habit of not investing in high-tech stocks. Will high-tech stocks account for an increasing proportion of your portfolio in the future

Buffett: we have no plan to buy other high-tech stocks at present. In terms of market value, we invested more than $13billion in IBM stock and made a big bet. I don't think I can speculate about the future of most other high-tech companies. But on the IBM issue, I think I can still make up my mind

: is it a wise decision to invest in PetroChina and BYD

Buffett: these two investment plans have achieved good results. PetroChina's investment has ended. We bought it and then sold it, earning about $3.5 billion. I hope you can help me find a similar company in China. The investment in BYD is not over yet, but we are optimistic about our investment in China

lifelong investment philosophy

: you once said that you only buy the stocks of "great" companies. How do you define "great"

Buffett: we like those enterprises with long-term competitive advantages and high return on capital. If we can believe that they can achieve high return on capital in the long term, like their management team, and can buy at a reasonable price, we will write a check

: what Chinese investors, especially retail investors, most want to know is how did Buffett achieve such success? What is the secret of Buffett's successful investment

Buffett: at the age of 19, I read a book by benjamingraham, smart investors. In Chapters 8 and 20 of that book, I found my lifelong investment philosophy and kept these basic principles unchanged. Although I have grown a lot since then, my investment has always been based on this philosophy. I recommend this book to Chinese investors

: some people say that Buffett is a "legend", and legend means there will not be many. Do you think there will be a second Buffett? Have you ever seen someone who thinks he or she is great, which must be the simplest and most basic thing like yourself

Buffett: Yes. There are such people working for us now. Of course, they are not exactly the same as me, but they will also do a good job. My partner Munger is such a person. There may not be no argument between us, but he did as well as I did

: there are such people working for you just now. Have you determined your successor

Buffett: it is very inconvenient to take and place all samples. It can be said that he is the successor of investment, but not the successor of company management

: I'm based in Washington, D.C., and I often cover politics. Nowadays, many business people are "business is good", have you ever thought about running for Congress, or even the president of the United States

Buffett: No. My father used to work in Congress. At that time, I was also very interested in politics, but I never wanted to be a politician

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