On May 4, at the annual Berkshire Hathaway shareholders’ meeting, Hathaway’s head Warren Buffett was interviewed by Yahoo Finance.
When asked about China, Buffett said that he has always been open to investing in China. He once invested in PetroChina, a Chinese oil and gas company, and Charlie Munger has invested in BYD, a Chinese automobile manufacturer. Both of the large investments yielded good returns.
China’s recent GDP growth slowdown is not something Buffett worries about. “China is going to grow a lot over time,” Buffett said, “Back in the day, China had 20 percent of the world’s population. It was far from reaching its full potential. China had a large talent pool, decent soil. and what’s happened there is beyond belief, and the development is not over yet.”
Buffett compares China’s development in recent years with the development of the United States. “The United States has taken advantage of their tailwind, and China has had a hurricane behind it in recent decades. They have found a way of life that is dramatically different compared to what it was a few decades ago. The United States has done it too,but it took so much longer,” he said.
Buffett came to China in 1995 for the first time. At that time, China’s achievements were called miracles. Ten years when he went back, China had become a completely different country, developing at an incredible pace.
Featured Image Source: CNBC