Why did Berkshire’s Buffett spend $100 million on a hedge fund?
The hedge fund investor who has made billions by betting against the U.S. stock market has spent hundreds of millions of dollars on a series of high-profile investments in the past year.
Warren Buffett is the owner of the world’s biggest and oldest Berkshire Hathaway (BRK.
A), which owns about one-third of the U-S.
Berkshire Hathaways portfolio has seen its value grow more than 70 percent in the last year, according to FactSet data, largely because of the hedge fund’s investments in emerging markets, including China and India.
The company has seen a recent surge in its market capitalization, and analysts are bullish on its prospects.
“This year is really looking like the next big one for Berkshire Hathafuckers portfolio, and we’re already seeing it expand,” said Peter Johnson, an analyst at Bernstein Research.
“This is the kind of investment where we think it’s probably a great time to be there.”
Buffett’s investments have generated a lot of excitement in the tech industry, where the stock market is booming and technology companies are in a frenzy to capture an increasing share of the $16 trillion U.D. market.
In October, the fund paid $1.6 billion to buy $2.1 billion of a Chinese e-commerce firm called Taobao, in part because it was concerned about a slowdown in China’s growth and rising competition from foreign companies.
Taobacao was the first Chinese ecommerce company to go public in the U!
C.S., after a long search.
The fund also bought $400 million in a U.K.-based software startup called Flattr, and in January, it bought $2 billion in a tech start-up called Waze, which specializes in mapping and mapping data to cities.
In addition to its investments, Berkshire Hathans management has been bullish on companies that make its stock.
Buffett is known for his investments in American Airlines (AAL), Coca-Cola (KO), Microsoft (MSFT) and other companies that are making a splash in the emerging markets.
He has also bet against a number of big-name companies that have been hit by global financial crises.
In March, Berkshire paid $100.5 million to buy the American Airlines shares of American Airlines Group (AAPG), a merger of two major American airlines, according a report from Bloomberg.
In May, Buffett said in an interview that he was interested in buying the shares of the Chinese ecommerce firm Alibaba, which has grown into one of the biggest companies in China, by buying its stake in a unit of China’s Alibaba Group Holding Ltd.
In June, Buffett paid $6.6 million to purchase $3.2 billion of the e-retailer Shopify, which he had bought in 2014.
In August, Buffett announced he was paying $1 billion to purchase the shares, which are owned by Shopify cofounder Paul Lee.
Buffett also has been interested in investments in tech companies that aren’t necessarily in the ecommerce sector, including companies that help people find and buy books.
He is also looking to invest in companies that compete with Amazon.com Inc. (AMZN), which is the largest e-book seller in the world, according the New York Times.
In a September interview, Buffett called Amazon a “fraud” and “scam.”
He also said that he didn’t see any value in buying out BookTrip Inc., a company that helps bookstores compete with online retailers.