In short, the “Oracle of Omaha” is upbeat on China, he thinks the US market will continue to rise, and he isn’t getting rid of his 10% stake in Shenzhen-based hybrid automaker BYD (HK: 1211, SZA: 002594) anytime soon.
Speaking with Mainland Chinese reporter Duan Jiayu at his office in the American Heartland, Buffett said he had no regrets about buying his 10% stake in BYD a few years ago, and would continue to hold onto his shares in the hybrid automaker.
Buffett, known for his stoic patience, long-term thinking and “value investing,” said that rising markets were no more frightening than falling markets, but deteriorating value was something to worry about.
Not only was he bullish on equities, especially in the US, but he also said that stocks were still the best place to put money these days.
“I can’t tell you where the US market will be next week, or even next month. But I’m rather certain that over the long term, it will show an overall uptrend,” he said.
“I don’t think the US economy is frail. The stock market recovering faster than the overall economy is not to be unexpected at it is all a process.
“In the years following the global financial crisis in 2008, the US has done better than most other countries.”
He said the relatively loose monetary policy adopted by the Federal Reserve Board over the past three years has not only been good for Berkshire Hathaway, but good for the US economy as well.
Buffett said that the high-flying Chinese economy of the past few years was due for a correction, and such undulations were a natural phenomenon in any economy – developed or otherwise.
Despite the Shanghai Composite Index’s recent struggles and the slower GDP growth in China lately, he said he was still upbeat on the world’s second biggest economy’s market potential down the road.
Speaking of roads, he said he was in it for the long haul, at least as far as his 10% stake in hybrid automaker BYD was concerned.
“I’m not selling my BYD shares,” he said, adding that he was encouraged by the leadership of BYD’s CEO Wang Chuanfu and the direction he was taking the Shenzhen-based manufacturer in.
Buffett and his partner, Charlie Munger, were recently thanked by BYD North America President Li Kezeng who said that in BYD’s darkest days, during which its share price plummeted, sales slumped and many media outlets began writing off the company, Buffett and Munger held their position
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