2024: Will Buffett invest more in China or Hong Kong?

Matthew Lai: Hi, Mr. Buffett, this is Matthew Lai from Hong Kong. I run a listed company called FW, and we’re very grateful to learn from you—you’re truly an inspiration. My question is, besides the electric car company BYD, under what circumstances would you reconsider investing in other companies in Hong Kong or China? Thank you.

Warren Buffett: Well, our primary investments will always be in the United States. However, we do have U.S.-based companies, like American Express and Coca-Cola, that operate globally. Coca-Cola, for instance, is the preferred soft drink in roughly 170 to 180 countries. American Express also has a strong position in the credit card market, strengthened over the last 20 years for various reasons, including contributions from board members like Ken Chenault.

As for BYD, we invested in it because the opportunity was extraordinarily compelling. Similarly, we invested in five major companies in Japan over a year, despite the challenges our size poses. But generally, we’re unlikely to make large investments outside the U.S. because we’re deeply familiar with its strengths and challenges. I don’t have the same comfort level with other economies or cultures, and fortunately, I don’t need to since I’m already in one of the world’s largest economies.

If we make a major investment, it’s almost certain to be U.S.-based. Over the years, Charlie has twice urged me strongly to “buy, buy, buy”—once for BYD and once for Costco. Looking back, he was absolutely right on both counts, though I could have been even more aggressive with Costco.

Our position in Japan is solid, and we’re pleased with it. But while we stay informed about global markets, it’s very unlikely we’d make large commitments in most other countries. We prioritize safeguarding your investment, and we believe the U.S. offers the lowest risk of making significant mistakes. Thank you, Becky.