Warren Buffet,chairman and CEO,Berkshire Hathaway
“The question, however, is whether we have any advantage or insights into those businesses in India or any contacts that will make possible transactions that Berkshire would like to participate in. That is something a more energetic management at Berkshire could pursue,” Warren Buffet, chairman and CEO of Berkshire Hathaway said
Billionaire investor Warren Buffett said that the Indian market has “unexplored” opportunities which his conglomerate holding company, Berkshire Hathaway, would like to explore “in the future”.
Buffett’s remarks came at Berkshire’s annual meeting on Friday when Rajeev Agarwal of DoorDarshi Advisors, a US-based hedge fund that invests in Indian equities, asked him about the possibility of Berkshire exploring in India, the world’s fifth-largest economy.
“It is a very good question. I am sure there are loads of opportunities in countries like India,” he said.
“The question, however, is whether we have any advantage or insights into those businesses in India or any contacts that will make possible transactions that Berkshire would like to participate in. That is something a more energetic management at Berkshire could pursue,” the co-founder, chairman and CEO of Berkshire Hathaway said.
Buffett, 93, said Berkshire has a great reputation around the world. He said, his Japanese experience has been fascinating enough.
“There may be an unexplored or an unattended opportunity…but that may be something in the future,” he said about India.”
Buffett said the question is if Berkshire has some kind of advantage in pursuing those unattended opportunities, particularly against people who are managing other people’s money and getting paid based on assets.
Currently, Berkshire Hathaway directly has some reinsurance exposure in the Indian market. Besides, Gen Re,a member of the Berkshire Hathaway family of companies, has set up a foreign reinsurance branch (FRB) in India since 2017. It provides reinsurance solutions to the Life & Health and Property & Casualty insurance industries.
In 2011, Berkshire Hathaway had set up Berksire India, which had become a corporate agent of Bajaj Allianz General Insurance and had planned to sell general insurance products online to retail customers through BerkshireInsurance.com.
Analysts had expected the corporate agency to be a launching pad for Berkshire Hathaway’ larger operations in India gradually.
However, in Aug 2013, Berkshire Hathaway had shut down its corporate agency operation with Bajaj Allianz General Insurance.
Recently, there was a buzz in the market that the new financial arm of Reliance Industries, Jio Financial Services, may rope in Berkshire Hathaway as a joint venture partner, for its proposed insurance foray in the country.
During a Question and Answer session, Buffett answered several questions related to some of the key investment decisions taken by Berkshire Hathway lately.
Decidedly reducing stake in Apple was one of the key topics. Buffett clarified that it had nothing to do with the long-term view on the stock and Apple will probably remain one of their largest holdings despite the recent slowdown.
He also told shareholders that Vice Chairmen Greg Abel and Ajit Jain have proven themselves the right people to lead Berkshire after he departs.