One of the most well-known investors of all time is seeing his recent investment activity called out by a more recent well-known investor.
Are the comments praise or an attempt to take on his legacy?
What Happened: Legendary investor and Berkshire Hathaway Inc (NYSE: BRK-A)(NYSE: BRK-B) CEO Warren Buffett has been increasing his bets on Japanese stocks and enjoying strong returns in recent months.
The investment strategy saw his ownership stakes in the Japanese companies increase and came at a time when major Japanese stock market indexes outperformed the key American stock index metrics.
Investor Chamath Palihapitiya, who was once labeled as the “next Buffett” by the media, took to Twitter to share his thoughts on Buffett’s strategy.
“I was really curious about Buffett’s ownership of the Japanese trading companies and wanted to understand why he did it? As it turns out, the trade is really brilliant,” Palihapitiya tweeted. “He found a group of companies that had very low volatility, grew earnings predictably, had a good dividend and, in most cases, were buying back their stock.”
Palihapitiya said the next step by Buffett is one that is “awesome.”
“As far as I can tell, he issues Japanese debt at very low rates, uses the proceeds to buy the stocks and then uses the dividends he then gets from owning these stocks (which are greater than the interest rates he’s paying …
