Straight to Omaha | Interview with Mario Gabeley: I'm buying these kinds of Chinese companies!

Berkshire Hathaway's shareholder meeting, which is concerned by global investors, was held in Omaha, Nebraska, and Sina Finance had a conversation with Mario Gabelli, the "Super Mario" of Wall Street and the founder of GAMCO Investors, at the shareholders' meeting.

Mario told Sina Finance in an interview that China is very important in the global economy, and its progress must be recognized. "We have to appreciate those entrepreneurs. I am bullish on China. ”

When asked if he was concerned about the technological revolution, Mario came up with his own stock selection idea: Luckin coffee is cheaper. The price is one-third that of Starbucks, and it's pretty good, "I'm buying stock in this company." ”

He believes that AI is a tool for delivering content at a low cost, which can make the production of content easy, but it will not change the content, and those who produce it will become extremely valuable.

When talking about media platforms, Mario said: He will not use TikTok, but only focus on the stock market and companies. "I don't have time, I only focus on the stock market, I look at companies, I don't listen to music, I only read books about music. I only watch about 50 movies a year. ”

Guest's golden sentence:

AI can make content production easy, but it doesn't change content, which is not the same as advertising. AI is useful. And the point is, the people who produce it will become extremely precious. Whether it's K-pop, Taylor Swift, or Move to Alice, there will always be talented people who want to hear their performances.

If you buy Starbucks in Shanghai, you're too rich. Luckin Coffee is cheaper, it's a third of Starbucks' price, and it's pretty good, and I'm buying stock in this company.

I don't look at anything, I don't have time. I only focus on the stock market, I look at companies, I don't listen to music, I only read books about music. I only watch about 50 movies a year.

The following is a transcript of the interview:

Sina Finance: Considering the current economic situation, how do you deploy your investment strategy, and are there any areas or regions that you are particularly concerned about?

Mario: It's important that there is enough renewable energy to supply the vehicles. Therefore, we need to increase the energy generated in the nuclear reactors that China is building. Because China plays a very important role in the global economy, they must be recognized. I am bullish on China, there are a lot of creative people in China, and we have to make them more successful and praised. We want to make sure that the power can be transmitted from point A to point B, which is where we need it. So we want to take advantage of AI, and at the same time we're acquiring companies that supply energy to data centers, including companies that provide water and power to data centers. It's an important part of what we do.

Sina Finance: I remember you talked about media in 2020, and you said that it is also important for us to have good content creators and their global reach. But I wonder if as AI and personalization algorithms change content distribution, is it possible to deliver content directly to consumers, not through the media, and how will this affect the media and advertising industry?

Mario: Content is not the same as advertising. Think of sports. Think about how it evolved. Think about what works today. The first time I went to China, I went to Longevity Films, because they had Bruce Lee movies. The number of locally produced films in China has increased significantly and already accounts for a large portion of the market. But what's going to happen in the next five years? You'll find it easier to make these films, but it doesn't change the content. You need to deliver what your customers want, when they need it, at the lowest possible cost. So, AI started to become another tool. Think about it, if we went to the movies together 100 years ago, the movies at that time were without sound. Then there was sound, there was color, there was three-dimensional, and now there's IMAX, and even a lot of new technologies are being created. So, AI is useful. And the point is, the people who produce it will become extremely precious. Whether it's K-pop, Taylor Swift, or Move to Alice, there will always be talented people who want to hear their performances.

Sina Finance: In the face of the technological revolution, what advice do you have for us?

Mario: Forget those. The answer is, you go to a supermarket in the U.S. and see what people are buying. Where do you go to buy coffee in Shanghai, China?

Sina Finance: Starbucks.

Mario: Oh, you're so rich. Luckin coffee is cheaper. The price is a third of Starbucks' and it's pretty good, I'm buying shares in this company and the price has dropped. Ecosystem, one of the companies that we own, we're buying shares in some other infrastructure companies. There was always an opportunity, and we didn't invest a lot of money.

Sina Finance: When it comes to media platforms, where will we watch the content, I want to know what you think about TikTok?

Mario: I don't use it.

Sina Finance: Why?

Mario: Because I don't know how to use it. Look, this is my modern phone. Do you know what this is? This is a flip phone from 20 years ago, and I bought it for 20 dollars.

Sina Finance: Why don't you switch to an iPhone?

Mario: Oh, I have one, but I don't want to use it. I'm just doing this for you.

Sina Finance: So you don't watch TikTok anymore?

Mario: No, I don't look at anything. I don't have time. I only follow the stock market, I look at companies, I don't listen to music, I only read books about music. I only watch about 50 movies a year.

Sina Finance: Great. The next question. How do you see China's market and economy at the moment?

Mario: China's economy has achieved 5% real GDP growth, which is completely expected. I think according to the International Monetary Fund, the size of the global economy will reach $115 trillion in the future, and China will account for 70% of it. China is very important in the global economy, and their progress must be recognized. We have to appreciate those entrepreneurs. I am bullish on China. There are a lot of creative people in China, and we have to make them more successful and praised. In the United States, we must also praise the entrepreneurs who are creating change.

Sina Finance: Thank you. But we are not decision-makers. We are just a younger generation of investors and employees. Can you tell us more about your investments in China?

Mario: One of the companies that I was there was the companies that made the news, the companies that supplied the supermarkets, the companies that provided the drinks, and that's what we were looking at.

(Sina Finance Li Jia from Omaha, USA)