Buffett said he knows America's rules, weaknesses, and strengths, and he generally doesn't feel the same about many other countries in the world. BYD and Costco are the two stocks that Munger has strongly advocated buying during the years he worked with Munger. He believes India has plenty of opportunities. But the question is, what advantage does Berkshire's view of India have. Buffett revealed that Berkshire is evaluating investment opportunities in Canada.
Berkshire Hathaway holds large amounts of cash, but Buffett anticipates that the next big deal may not be an investment outside of the US.
Buffett reiterated his logic of focusing on investing in the mainland of the United States:
Although we participate in the world economy by investing in some companies, we don't invest heavily outside of the US. I understand America's rules, weaknesses, and strengths, and I generally don't feel the same about many other countries in the world; luckily I don't have to do that.
In response to a shareholder about Berkshire's investment in BYD, Buffett said that BYD and Costco are the two stocks that Munger has most resolutely advocated buying during the years he worked with Munger:
Charlie emphasized to me twice, buy buy. BYD is one of them, Costco is another. I should have been more active on Costco. If we hadn't done this, there would be no fatal consequences, but Munger's judgment on both companies was absolutely correct.
Buffett also talked about investing in several Japanese trading companies, saying the relevant investments were attractive, and “we bought as fast as possible.” Buffett first purchased relevant shares in Japan on his 90th birthday in August 2020. The initial purchase was worth about $6 billion. However, he revealed that bets on other countries' stock markets are unlikely to reach this scale.
Some investors asked Buffett if the Indian economy and stock market have performed well in the past five to twenty years, and whether Berkshire is actively seeking opportunities in the Indian stock market.
In response, Buffett said he believes India has plenty of opportunities. But the question is, what is the advantage of Berkshire's opinion on India, and is it possible that India wants us to participate in our investment. Maybe there are areas we haven't explored or noticed. There may be more opportunities in the future, and of course there may be opportunities now. The question is, does Berkshire have the advantage to pursue these opportunities, or make them a reality. Japan's investment is good, and India might have such an opportunity, but he doesn't know. Because the culture was different, he couldn't tell them apart.
Buffett revealed that Berkshire is evaluating investment opportunities in Canada. He said that no matter how or in what form the money is invested in Canada, he will not be uneasy. In fact, I'm focusing on one thing right now. However, Buffett did not reveal any more specific companies in Canada that he is concerned about.
Buffett said that Canadian companies operate similarly to those in the US. However, there aren't as many big companies in Canada as there are in the US. There are businesses that Berkshire can do quite well, and Canada could benefit from Berkshire's participation.
Canada's benchmark stock index has accumulated a cumulative increase of about 5% since this year, and the country's economy has a huge financial and commodity industry. Before this shareholders' meeting began, the market had a lot of speculation about Berkshire's mysterious investment. The company has been given confidential treatment for a mysterious share it purchased in the financial sector over the past three quarters.