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View Full Version : Reuters - Berkshire's Buffett says China is too hot to buy

touchring
26th October 2007, 04:40 PM
http://www.washingtonpost.com/wp-dyn/content/article/2007/10/24/AR2007102400276.html

Berkshire's Buffett says China is too hot to buy

By Kirby Chien
Reuters
Wednesday, October 24, 2007; 5:32 AM

DALIAN, China (Reuters) - Berkshire Hathaway Inc's Warren Buffett said on Wednesday he is scouring the world for big businesses, but is doubtful about finding a good buy in China because the market is too hot.

Hong Kong-listed shares in mainland companies (.HSCE) have risen 89 percent so far this year, while the main Shanghai index (.SSEC) has surged more than two-fold in 2007 and has jumped five-fold since the start of last year.

Buffett, speaking to reporters at the opening of a factory owned by an Israeli company he controls, had been asked about Berkshire's investment in PetroChina Co Ltd (0857.HK) (PTR.N), the country's largest oil and gas producer.

Buffett said last week that Berkshire (BRKa.N) (BRKb.N) had sold its entire stake in PetroChina, netting a huge profit for the insurance and investment company.
Rubber Duck
26th October 2007, 04:57 PM
It might be that reducing the level of foreign investment might be seen as a core objective by the Chinese Government. They won't want to see exponential growth in an economy that is dominated by foreign investors.

If the Yuan floats and doubles against the dollar, selling Chinese stock might be a serious investment blunder. No doubt the Sage has made a few in his time.
touchring
26th October 2007, 05:04 PM
I think buffet bought chinapetrol on the HK exchange.

I'll be monitoring this stock if the bubble does bursts. It will be a good investment at the right price.
touchring
3rd February 2008, 10:37 AM
Wow, Warren buffet got it right this round.

The SSE index has fallen from 5800 points to 4300 points since that call! :o

http://finance.yahoo.com/q/bc?s=000001.SS&t=6m&l=on&z=m&q=l&c=
Rubber Duck
3rd February 2008, 10:56 AM
Maybe but until you know where he has invested the money in the meantime you cannot really say. If he put it on Wall Street and you factor in Currency changes then he would not have been significantly better off and the risk of the downside is much greater. On the other hand he might be making a killing shorting the dollar.

Wow, Warren buffet got it right this round.

The SSE index has fallen from 5800 points to 4300 points since that call! :o

http://finance.yahoo.com/q/bc?s=000001.SS&t=6m&l=on&z=m&q=l&c=