share_log

碰上印度,巴菲特也得兜着走

When he meets India, Buffett also has to walk around

Gelonghui Finance ·  11/27/2023 09:46

The China-Basic Association revises two major rules

The money India earns is spent on India, and they each want to take it home.

Although everyone is joking: Rao is the stock god Buffett, when A-shares come, he has to change to Bajit. But ask yourself, Grandpa Pakistan has made money from CNPC and BYD. With this pot, A-shares can stand up their backbone and say: I won't back this time.

Buffett was in front of his brother, but he really couldn't eat and still walked around.

Buffett clears India's “Alipay”

On Friday, Berkshire Hathaway, owned by Warren Buffett, sold 15.6 million shares of Paytm's parent company One 97 Communications at a price of about 13.71 billion rupees (US$164.7 billion) through a major transaction, completely clearing its stock.

According to data from the National Stock Exchange of India, these stocks sold for 877.20 rupees ($10.52) per share, and the total cash out was about $120 million.

Known as India's “Alipay”, Paytm is India's largest mobile payment service company. It was officially listed on the Mumbai Stock Exchange in November 2021, marking the largest IPO in Indian history.

Paytm has also attracted many investors, such as SoftBank, Alibaba, BlackRock, the world's largest asset management giant, and Canadian Pensions.

Buffett is also a part of the luxury investment horizons that cannot be ignored. In 2018, he invested about 260 million US dollars in Paytm and obtained 3% of the shares. This is Berkshire Hathaway's first direct startup investment in India.

However, I have to say that Paytm's parent company's stock price performance is comparable to a “heist. Not only did it break on the first day of listing, but the stock price also fell all the way down, falling from 25.8 US dollars to a bottom of 5.58 US dollars last year. Although the stock price has surged by more than 60% this year, the current stock price of 10.73 US dollars is still below 60% compared to the IPO price.

Although Buffett sold 1.4 million dollars at a profit of 36 million US dollars during the peak period of Paytm's listing, this was still a losing investment: Buffett's investment of about 260 million US dollars in Paytm only recovered less than 160 million US dollars from his investment of about 260 million US dollars on Paytm.

Buffett is a bit slower than Sun Zhengyi and Jack Ma this time. In November of last year, SoftBank was already holding on to 29 million Paytm shares at a price of 555 rupees per share; Alibaba was more ruthless and directly liquidated, selling Paytm shares twice in January and February this year, ending this eight-year investment; Ant Group also sold 10.3% of Paytm's shares in August of this year, and is no longer the company's largest shareholder.

It's worth mentioning that in addition to Paytm's parent company, Buffett also invested in another major fintech company in emerging markets, Brazilian payment processor StoneCo in 2018. Although the company's US stock market trend was strong that year, the current stock price is at a standstill compared to the IPO.

Buffett only began investing in Apple in 2016, and the technology content of his holdings began to gradually increase. Currently, he has bought Apple as Berkshire's largest shareholder.

In response to previous questions from the outside world about why he didn't buy technology stocks, Buffett once said that he doesn't understand technology stocks; this is something outside his circle of competence.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
    Write a comment