Billionaire investor Warren Buffett has hinted at potential forays into the Indian market, citing the country’s “unexplored” opportunities and its position as the world’s fifth-largest economy. Mr Buffet’s comments come amidst growing optimism surrounding India’s economic prospects and signal a potential shift in Berkshire’s investment strategy towards emerging markets.
Mr Buffet made his remarks at the Berkshire Annual Meeting 2024, held in Omaha in the US state of Nebraska, when an investor asked him about the possibility of Berkshire exploring the Indian market.
“It is a very good question. I am sure there are loads of opportunities in countries like India,” he said. “The question, however, is whether we have any advantage or insights into those businesses in India or any contacts that will make possible transactions that Berkshire would like to participate in. That is something a more energetic management at Berkshire could pursue.”
With GDP growth soaring at 8.4 per cent during the October-December quarter of the fiscal year 2023-24, India continues to maintain its status as the fastest-growing major economy globally. The International Monetary Fund’s projections further bolster India’s economic expectations, forecasting a growth rate of 6.8 per cent for 2024.
“There may be an unexplored or an unattended opportunity…but that may be something in the future,” he said about India.
“In India, I am sure that there are loads of opportunities in a place like India, and the question is do we have any advantage, in either insight into those businesses or contacts that will make possible for some transactions that participants in India would particularly want us to participate,” Mr Buffet, 93, said.
Suggesting a potential venture into India, he mentioned that it would not be long before they explore opportunities in the country.
“We will see how the next management plays the game out at Berkshire and fortunately you don’t have too long to wait on that generally,” he said.
India’s GDP is currently ranked 5th, after the US, China, Germany, and Japan.
Mr Buffett addressed shareholder queries and shed light on Berkshire’s investment outlook. With the absence of his longtime collaborator, Charlie Munger, who died last year, Mr Buffett confirmed Greg Abel as his successor, entrusting him with key investment decisions, including the management of Berkshire’s stock portfolio.
At the meeting, Mr Buffett’s strategic insights extended beyond India, encompassing a range of topics from the US fiscal deficit to the transformative potential of artificial intelligence (AI). Mr Buffett cautioned against the dual nature of AI, acknowledging its potential for both innovation and deception.
