Warren Buffett prefers Berkshire Hathaway invest in Japan than Taiwan due to US-China rivalry, faults US for bank crisis
- Warren Buffett said he is more comfortable deploying capital in Japan than Taiwan, reflecting the growing tensions between the US and mainland China
- Buffett also said messaging from US government over the regional banking crisis had been ‘poor’, suggesting that is why confidence has not returned among consumers
Investment tycoon Warren Buffett on Saturday said he is more comfortable with Berkshire Hathaway Inc deploying capital in Japan than Taiwan, reflecting the growing tensions between the United States and mainland China.
The billionaire investor contrasted Berkshire’s recently increased investments in five Japanese trading houses with its recent U-turn on a multibillion-dollar investment in Taiwan Semiconductor Manufacturing Co, or TSMC.
“It’s a marvellous company,” Buffett said at Berkshire’s annual meeting, referring to Taiwan Semiconductor. But “I would feel better about capital that we’ve got deployed in Japan than in Taiwan … That’s the reality.”
Berkshire invested more than US$4 billion in TSMC last year, only to sell most of it within three months. Tensions between the US and China have simmered in recent months, with some investors worried that mainland China might invade Taiwan.
Meanwhile, Berkshire revealed last month it had increased its stakes in Itochu Corp, Marubeni Corp, Mitsubishi Corp, Mitsui & Co and Sumitomo Corp to 7.4 per cent, and Buffett said his company might buy more.
