India topic makes up to Berkshire Annual meeting; Buffett believes, “a more energetic management” should evaluate the possibility

India topic makes up to Berkshire Annual meeting; Buffett believes, “a more energetic management” should evaluate the possibility

Buffett said that Berkshire's concern is whether it has a competitive edge over others who manage other people's money and are paid based on assets by chasing such (unattended) chances.

Warren Buffett said, "I am sure there are loads of opportunities in countries like India."

India has at last made an appearance on the Berkshire stage. It was the first time Warren Buffett had been asked a question on India at a Berkshire Annual Meeting. Rajeev Agarwal of DoorDarshi Advisors, a US-based hedge fund that makes investments in Indian stocks, posed the query. "Indian equities have done quite well in the last 5, 10, 20 years," inquired Rajiv Agarwal. It now has the fifth-largest economy, but within a few years it will rise to the third rank. I would want to know whether Berkshire is searching for opportunities in the Indian equities market and what would make it possible for you to purchase anything significant there.

"It is a very good question," said Warren Buffett. There are undoubtedly a ton of prospects in nations like India. As Buffett said, the issue was if Berkshire had any advantages, insights into those Indian companies, or relationships that would enable some of the deals in which Berkshire would want to be involved. He said, "Berkshire's management could pursue that with more vigor."

According to Buffett, Berkshire has a solid international reputation, which should facilitate this. His time in Japan, he said, had been sufficiently engaging. Berkshire invested in five trading houses in Japan last year, citing substantial undervaluation in businesses that provide substantial cash flows. Apart from that, Berkshire has mostly made investments in the US. His acquisition of Chinese EV manufacturer BYD is another example of an exclusion.

Regarding India, Buffett went on, "There might be an opportunity that goes unnoticed or unexplored, but that might be something in the future." Opportunities exist.

Buffett restated Berkshire's predicament once again. "The issue is whether Berkshire has an edge over others who manage other people's money and are paid based on assets when it comes to chasing such (unattended) chances. Many players in the game own and operate companies, and they will all become wealthy since their earnings may be determined more by how much they purchase than by what they do, the speaker said.

Given Berkshire's enormous size and close to $200 billion cash reserve, Buffett has been undertaking outright buyouts or substantial interest purchases in businesses that have the potential to significantly impact the insurance behemoth. Buffett does not use investment bankers or brokers because, in his opinion, their interests do not coincide with those of asset purchasers.

Buffett has mastered the technique of purchasing companies straight from their owners when they are seeking a long-term location for their enterprises due to a variety of factors, including as a lack of family succession. "We'll see how Berkshire's incoming management approaches the game. "Thankfully, there isn't a lengthy wait on the way down... even though I'm feeling well... I understand actuarial tables a little bit, so I know I shouldn't be signing any four-year contracts as many other people do," he said. Buffett is ninety-four.

The goal of Rajiv Agarwal's DoorDarshi Fund is to provide investors with higher returns by making long-term investments in "compelling opportunities in Indian equities."