One of the hottest and most interesting events in the world in recent times should be the annual shareholder meeting of Warren Buffett.
Warren Buffett's company holds an annual shareholder meeting, at which Buffett usually reveals some of his latest views on investing.
Warren Buffett's latest investment trends and plans
This year, as usual, Buffett gave very clear answers to questions of interest to investors, and also talked about his plans and intentions for the next step.
This year, Warren Buffett's Berkshire Hathaway's latest earnings report showed that the performance was also good, which attracted widespread attention.
One of the notable points is that Warren Buffett sold a significant percentage of Apple shares this time, a move that had an impact on Apple's stock price.
In this regard, Buffett was asked why he sold so much if he was so bullish on Apple stock. Buffett's answer is that the sale of Apple shares this time is mainly for tax considerations.
In the U.S., as of March 31, both individuals and companies are subject to capital gains tax, which means that profits from investing in stocks are taxed in cash.
Apple's stock did well last year, so Buffett sold a portion of Apple stock, mainly to pay taxes, which is another explanation.
However, if we look back at Warren Buffett's Berkshire Hathaway, it has $180 billion in cash on its hands, which is the most cash in the company's history.
So, is he planning to gradually reduce his investment in Apple and sell shares, or, as he said at the shareholders' meeting, just for technical reasons, in order to pay taxes?
We also need to wait until the next earnings report to see if Buffett continues to hold these Apple shares. Because Apple stock is the stock with the largest percentage of earnings and the highest market capitalization in Buffett's portfolio.
At the shareholder meeting, Warren Buffett highlighted the three stocks he currently holds in his portfolio, which are also stocks that he has been bullish on for a long time.
These three are Apple, Coca-Cola, and American Express credit card companies.
Warren Buffett is optimistic about the U.S. stock market, despite investors asking if he would invest in markets other than U.S. stocks.
Warren Buffett made it clear that he only invests in what he is familiar with. During his investment career, he knows a lot about the U.S. stock market because it's his home market.
He has researched and followed other markets, but does not guarantee that he will invest. For example, although he buys a portion of Japanese stocks, these investments are not a large part of the Japanese market.
Of course, Warren Buffett invests in Japanese stocks differently than others. He used the U.S. dollar as collateral to issue bonds in the Japanese market, using the borrowed money to invest in Japanese stocks. In this way, he can not only get the dividend income of the stock, but also enjoy the income from the rise in the stock price.
Some people have found that Buffett has obtained dividend income higher than the cost of financing with lower bond costs, as well as the income from rising stock prices.
Therefore, he kept the dollar assets and did not immediately exchange them for yen, but borrowed them in yen. From the point of view of the exchange rate, he holds the dollar, while the yen is depreciating, which is his first victory on the exchange rate.
The second wins, because the five publicly traded companies in which Buffett invests pay more dividends each year than the interest they need to pay on issuing bonds.
Third, since Warren Buffett's investment, the stock prices of these companies have generally risen by almost double digits, and some stocks have even nearly doubled. As a result, Buffett's investment in Japanese stocks is a win-win-win.
Of course, as the Japanese stock market is gaining more and more attention from global investors, this investment model has also attracted a lot of interest.
Warren Buffett's investment strategy for other markets
Warren Buffett has two secrets that have not yet been fully revealed, the first being that he avoided disclosing one of his larger investments at the request of the SEC.
At present, everyone is speculating about which US finance-related listed company this investment is invested in. To this day, the identity of this company remains a mystery.
Another secret is that another market that Buffett is now focusing on is the neighboring Canadian stock market in the United States. Which listed companies and industries in Canada he has his eye on have not yet been publicly disclosed. He believes that relevant information will only be disclosed when appropriate.
In fact, not much is known about the Canadian market. But some Canadian stocks and publicly traded companies, such as the branded Canada Goose, have performed well in recent years, and their stocks have performed well.
In addition to Canada Goose, a new understanding of energy, especially nuclear power generation, has also emerged in the US stock market. Because now there are new nuclear power plants in the world that have overcome problems that could have led to catastrophe in the past.
In Canada's stock market, it is mainly mining companies that are related to nuclear energy, and this branch accounts for a significant proportion.
I once looked up a nuclear-related exchange-traded fund (ETF) traded in the United States and found that the top two shares it held were not publicly traded companies, but nuclear-related ETFs listed on the Canadian stock market.
Of course, the Canadian stock market has been weak recently, and the stock price in the US stock market has fallen to a year-to-date low.
Since the world is now focusing on nuclear energy, I looked for some nuclear-related ETFs in the U.S. stock market, and through these ETFs, I found that there are many companies in the Canadian stock market that are related to nuclear energy minerals. As for what other well-known companies in Canada, it is not well known at this time.
Warren Buffett has expressed concern about the Canadian stock market, and if I get this information, I will definitely share it with my friends as soon as I get it.
Every year at Warren Buffett's shareholders' meeting, the stock god will always reveal some of his latest actions and views on the market to a greater or lesser extent.
The conference answered many mysteries, including the question of his successor. Every year after Warren Buffett's shareholder meeting, someone compares the performance of the companies he manages with the S&P 500 over a specific period of time.
Recently, it is no exception, some overseas financial media have analyzed the stock price changes over the past 20 years and compared Buffett's performance with the S&P 500.
Buffett himself made it clear that his performance once lost to the S&P 500. This shows that in the stock market, it is challenging to always be a winner, no matter what time period is used.
Therefore, during the two months of "five poor and six absolute", I basically did not do too many operations, mainly observation.
When we invest now, we must be on the same starting line as the vast majority of investors in the world, and try to obtain returns and avoid risks in the same market.
Recently, I have mainly discussed cross-border ETFs, hoping to find investment opportunities through this channel.
Of course, May and June are not good times to invest, because the performance of cross-border ETFs this year has not been satisfactory since January, and it has not reached the stage where it can take profits, so it is still in the observation stage.
Author: Li Guangyi
Editor: Zhang Tianyi
Producer: Wang Junji
This article is the exclusive content of the WeChat public account of "CBN Broadcasting", please contact the background for authorization before reprinting. The individual stocks involved in this article are for reference only, and are not recommended for trading and are not responsible for personal income.