Buffett not “uncomfortable” with Canada
When countries look to attract the attention of big financial funds, they often attempt to brand themselves in a manner that will bring much-needed foreign investment to their shores. For example, you might see buzzwords such as:
Innovative
Efficient
Attractive
Shareholder-friendly
But given Canada’s stagnating economy, I think it’s appropriate to get excited about this Warren Buffett quote:
“We do not feel uncomfortable in any shape or form putting our money into Canada.”
When Buffett takes the stage at his annual “Woodstock for capitalists” in Omaha each year, the investing world sits up to take notice. So, it was noteworthy to hear his lukewarm notes about Canada, including:
“There are a lot of countries we don’t understand at all. So, Canada, it’s terrific when you’ve got a major economy, not the size of the U.S., but a major economy that you feel confident about operating there. … Obviously, there aren’t as many big companies up there as there are in the United States. There are things we actually can do fairly well that Canada could benefit from Berkshire’s participation.”
He went on to reveal his company’s possible Canadian strategy, saying, “In fact, we’re actually looking at one thing now.” While most other investors are cool on Canadian stocks, it’s interesting to see Buffett warm (again).
Buffett’s last major foray into Canada generated a massive 70% gain in a single year back in 2017 when he invested in Home Capital Group, so he may know a thing or two about making money in the Great White North.
Other highlights from the annual general meeting included (all figures in U.S. dollars):
Buffett’s company, Berkshire Hathaway (BRK.A/NYSE) is currently benefiting from high interest rates, as it sits on a massive cash hoard of $189 billion.
Berkshire sold about $39 billion worth of Apple stock during the quarter. Berkshire remains Apple’s single biggest shareholder with over $135 billion still invested.
In the absence of big deals, Berkshire continues to reward its shareholders by buying back its own shares to the tune of $2.6 billion for the quarter. When asked why he hadn’t used the cash to make big, flashy investments, Buffett responded, “I don’t think anyone sitting at this table has any idea how to use it effectively, and therefore we don’t use it. We only swing at pitches we like.”
Berkshire’s operating profit rocketed up 39% on a year-over-year basis.
Underwriting profits at Buffett’s insurance companies were up 185% year-over-year to $2.6 billion.
Buffett told the audience that he had sold all of Berkshire’s remaining Paramount Global shares and was refreshingly honest in admitting, “It was 100% my decision, and we’ve sold it all and we lost quite a bit of money.”
Buffett wrapped up the annual meeting by saying humbly, “I not only hope you come next year, (but) I hope I come next year.” He later added, “I know a little about actuarial tables,” in reference to his insurance expertise.
This insight was made particularly relevant given the absence of long-time friend and partner Charlie Munger at this year’s event. Munger passed away at age 99 in November 2023.
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