An online rumor has gone viral in China recently, saying that billionaire investor Warren Buffett is planning to invite 10 top-notch fund managers and entrepreneurs from China to meet with him in his Omaha office for the purpose of seeking investment opportunities.
Berkshire Hathaway is now sitting on US$128 billion of cash so it’s not at all surprising for Buffett to look for investment opportunities in the fastest-growing major economy.
In the past, Chinese fund manager Li Lu helped Berkshire Hathaway identify electric carmaker BYD Co. Ltd. (01211.HK) as an investment target, and the deal proved very profitable.
It’s perfectly logical for Buffett to look in that direction again.
While the online rumor sounds quite reasonable, it had no attribution. Besides, no established media outlets carried the report. And it was not reported at all in Western media.
The way I see it, some people might have cooked it up, probably to lure clients to invest in Chinese equity funds or to lure aspiring fund managers or entrepreneurs and charge them agency fees.
I’ve sent an email to Berkshire Hathaway’s investment relations department to verify the rumor, but have not received any response yet.
This article appeared in the Hong Kong Economic Journal on Nov 8
Translation by Julie Zhu
[Chinese version 中文版]
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