Buffett will not be “uncomfortable” with Canada.
When countries try to draw the eye of huge financial funds, they often try to differentiate themselves in a way that can attract much-needed foreign investment to their shores. For example, you may notice keywords like:
- Innovative
- Efficient
- Attractive
- Shareholder friendly
But given Canada’s stagnant economy, I feel it’s appropriate to have a good time this quote from Warren Buffett:
“We don’t feel uncomfortable in any way investing our money in Canada.”
Every yr, when Buffett takes the stage at his annual “Woodstock for Capitalists” in Omaha, the investing world takes notice. So it was notable to listen to his lukewarm comments about Canada, including:
“There are many countries that we don’t understand at all. So, Canada, it’s great when you have a big economy, not as big as the US, but a big economy that you’re confident will operate there. …Obviously there aren’t as many big companies up there as there are in the United States. There are things we can actually do pretty well that Canada could benefit from Berkshire’s involvement.”
He then revealed his company’s potential Canada strategy, saying, “In fact, we’re looking at one thing right now.” While most other investors are cool on Canadian stocks, it’s interesting to see that Buffett is warm (again).
Buffett’s last big trip to Canada caused quite a stir 70% profit in a single yr Back in 2017, when he invested in Home Capital Group, he may know a thing or two about making a living within the Great White North.
Other highlights from the Annual General Meeting included (all figures in US dollars):
- Buffett’s company Berkshire Hathaway (BRK.A/NYSE) is currently benefiting from high rates of interest because it has an enormous money pile of $189 billion.
- Berkshire sold about $39 billion value of Apple shares through the quarter. Berkshire stays Apple’s largest single shareholder with over $135 billion still invested.
- In the absence of major deals, Berkshire continues to reward shareholders by buying back $2.6 billion of its own shares for the quarter. Asked why he didn’t use the cash for large, flashy investments, Buffett replied: “I don’t think anyone at this table has any idea how to use it effectively, and that’s why we’re not using it.” We’re swinging only within the pitches we like.”
- Berkshire’s operating profit rose 39% yr over yr.
- Insurance profits at Buffett’s insurance firms rose 185% yr over yr 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 sold everything and lost a lot of money in the process.”
Buffett ended the annual meeting with the common-or-garden words: “Not only do I hope you come next yr, [but] I hope to come back next yr.” He later added, “I know a little bit about actuarial tables,” referring to his knowledge of insurance.
This finding was particularly relevant since Charlie Munger, a long-time friend and partner, was not at this yr’s event. Munger died in November 2023 on the age of 99.
