Munger talks China’s political risk and low-priced investment opportunities
Mounting concerns about actions by the Chinese government in recent years has affected the prices of some Chinese stocks, particularly internet shares. Charlie Munger said he’s willing to take on that risk for a good investment.
“The reason that I invested in China is I get so much better companies at so much lower prices,” he said. “And I’m willing to take a little bit more risk to get into the better companies with the lower prices. Other people might reach the opposite conclusion, and everybody is more worried about China now than they were 50 years ago.”
Munger’s comment came in response to a question from an audience member, who asked about “the clear dangers of investing under authoritarian regimes,” and cited atrocities in Russia’s war on Ukraine.
“There’s no question about the fact that the government of China has worried the investors from the United States,” Munger said. “There are more difficulties … dealing with the regime in China than there are the United States. And it’s different, it’s a long way away and they’ve got in their own culture in their own loyalty.”
— Tanaya Macheel
Buffett: ‘I look at Berkshire as a painting’
The possibilities for Berkshire Hathaway are endless in the eyes of Warren Buffett, who likened the company to a work of art.
“I look at Berkshire as a painting,” Buffett said. “It’s unlimited in size; it’s got an ever-expanding canvas, and I get to paint what I want.”
Buffett did acknowledge that he doesn’t know much about art, but added that “other people look at paintings and they see something, then they’ll see something additional later on, and they really have a different sort of perception in relation to that. To me, Berkshire is a painting, and I get to paint.”
“It’s in my head, and I see different things in it as I go along,” Buffett said. “It’s satisfying.”
— Fred Imbert
Buffett says Berkshire now owns 9.5% of Activision Blizzard
In the fourth quarter of 2021, Berkshire first purchased about $1 billion worth of Activision Blizzard stock, in a bet the company was undervalued. Buffett has said Berkshire “had no prior knowledge” of Microsoft’s plan to buy the company when Berkshire made its initial investment.
In January, Microsoft announced intentions to buy Activision for $95 per share. Its stock closed at $75.60 per share on Friday.
Buffett said he has been buying more shares of Activision since the deal was announced as the stock is trading way below Microsoft’s offer. Buying at these levels will yield a bigger return if the deal closes.
Buffett said Berkshire now owns about 9.5% of Activision. “If we went over 10%, we would file a report,” he said.
“If the deal goes through, we make some money, and if the deal doesn’t go through, who knows what happens,” Buffett said.
“We don’t know what the Justice Department will do, we don’t know what the E.U. will do, we don’t know what 30 other jurisdictions will do. One thing we do know is that…