On May 5, Beijing time, the 2024 Berkshire Hathaway annual shareholders' meeting, known as the "Spring Festival Gala in the investment community", officially ended in the American town of Omaha.
In the most closely watched question-and-answer session, Berkshire Chairman and CEO Warren Buffett, together with his two successors, answer questions about good friend Munger, succession plans, cash reserves, Apple reduction, artificial intelligence, autopilot, overseas investment and so on.
Buffett's point of view also reveals what investment opportunities25freespins? In this regard, qu Shaojie, assistant general manager of the International Business Department of the Great Wall Fund and QDII fund manager of the Great Wall New Energy vehicle, summed up a lot of practical investment information for everyone. Let's take a look.25freespins!
Do you know more about the United States, so do you cultivate investors or do you like this?
Buffett mentioned that Berkshire's main investment will still focus on the US market because he is more familiar with the rules and companies of the US market. Although his investment focus is on US stocks, he will still focus on some opportunities for non-US stocks. He has also been successful in investing in BYD and five major Japanese trading houses in the past.
When Buffett makes an investment, no matter whether it is an American company or a company from other countries and regions, he still values the fundamentals of the company, including growth and better corporate governance structure, better profitability and development prospects.
Buffett also inspired us to make global investment in line with the development of the times. Ordinary investors can consider investing in the global market through QDII funds and strive not to miss the development dividends of different trading markets.
Will the AI investment be cold? Facts have proved that the potential remains unchanged.
Buffett has his own investment aesthetic, he attaches importance to corporate profitability, adhere to value investment, that is, choose companies that can create more profits with less capital, buy at low valuations and hold them for a long time. Consumption is his long-term industry, but his investment has been keeping pace with the times. Buffett did not invest in technology stocks before, but when he realized the consumer electronics boom, he began to invest in Apple and made hundreds of billions of dollars.
Buffett's comparison of AI to "an elf that has come out of the bottle" reflects his concern about the double-edged nature of AI technology and his vision of the ethical and regulatory importance of AI.
But from the perspective of investment, we look at the development of AI based on facts. AI has given birth to a lot of new investment opportunities. Since the beginning of this year, we have seen that from the launch of the Sora model by OpenAI, to the heavy support of China's artificial intelligence industry, to the performance of an overseas chip giant, a series of events are sending positive signals to investors, reminding you that the golden investment era of artificial intelligence may have come.
If AI is still a global science and technology company engaged in an "arms race" on the supply side, then with the large-scale outbreak of the application side in the future, the hot artificial intelligence concept stocks are still expected to continue to rise.
Taking the intelligent driving field, one of the applications of AI, as an example, driven by AI, intelligent driving of new energy vehicles is ushering in rapid development and broad prospects for development. Data from the Ministry of Industry and Information Technology show that in the first half of 2023, the market share of intelligent connected passenger cars equipped with auxiliary self-driving system (L2) in China increased to 42.25freespins.4%, it is expected that the penetration rate of intelligent drivers of L2 and above in passenger cars will reach 70% in 2025.
Is there a chance for A shares and Hong Kong stocks? Keep watching!
A shares and Hong Kong stocks, after the previous decline adjustment, now have a greater investment attraction. Greg Abel, Buffett's future successor, also gave a more positive response at the Omaha conference, saying that A shares and Hong Kong stocks have many seriously undervalued companies, and these good companies that have been mistakenly killed have greater investment opportunities.
Recently, international investment banks, including UBS, Goldman Sachs and Morgan Stanley, have begun to be bullish on A shares and Hong Kong stock assets. With the inflow of international capital and the continuous uptick of Hong Kong stocks for several trading days, everyone has seen more rising confidence.
We are also very optimistic about China's capital market, including Hong Kong stocks. Hong Kong stocks rose by a large margin in April 2024, exceeding the expectations of many investors. The Hang Seng Technology Index, the Hang Seng Index and the Hang Seng Hong Kong Stock Exchange Index have basically completed their three-year bottom confirmation. In the past, Hong Kong stocks have been in the channel of "killing valuation", and the uncertain factor of "killing valuation" can come to an end.
(the picture shows the closing prices of the Hang Seng and Hang Seng Technology Indices, which are derived from Wind. As of May 6, the past performance of the index does not predict its future performance and investment is risky. )
In addition, after about three years of withdrawal, foreign investors began to increase their positions in Hong Kong stocks, the policy overlay was friendly, the economic fundamentals began to repair, the US interest rate cut was expected, and the overall environment was relatively friendly to Hong Kong stocks. Therefore, we expect that Hong Kong stocks may have a relatively long period of valuation repair, and the current time point is worth participating in the layout.
American stock technology is worth expecting ordinary people to participate.
Buffett has been keeping pace with the times on the road of value investment, adjusting the direction of investment in time according to changes in the economic situation and technological progress, and constantly looking for industries and companies that can adapt to the future economic development. His spirit inspires us investors to keep pace with the times, think independently, and make adjustments according to different market conditions.
We believe that the overall technology growth opportunities may be dominant in the future, and US technology stocks are still worth looking forward to. The main line of scientific and technological innovation for US stocks has just begun in 2023, and most likely it will continue in 2024. On the one hand, the wave of artificial intelligence is expected to continue to lead the development of science and technology, and relevant technology companies are gradually beginning to cash in on their performance; on the other hand, the Fed is expected to cut interest rates again this fall, and the market generally expects loose liquidity to form a certain support for US stocks. High-quality technology stocks may still be attractive.
We are particularly optimistic about the development of intelligent driving. Smart driving also benefits from the improvement of the penetration of new energy vehicles and the development of artificial intelligence. As one of the largest applications of AI, this field is expected to be the first to appear the application scenario of technology landing, and usher in the vigorous development.
The development of science and technology will bring more growth industries and great companies, smart driving and new energy vehicles, artificial intelligence and robots, chips, technology applications and other areas are worthy of attention.
In the context of the continued strength of this round of scientific and technological innovation cycle in the United States, domestic investors may be able to appropriately increase their participation in overseas investment. QDII fund provides a convenient, fast and low threshold option for ordinary investors to participate in overseas investment. With the QDII fund, investors can not only share high-quality assets in other markets, but also spread the investment risk of the single market by strengthening global allocation.
Disclaimer: the information contained in this communication comes from reliable channels and personal judgments of the researchers, but the Company does not provide direct or implied statements or warranties as to its accuracy or completeness. This newsletter is not a complete representation or summary of the relevant securities or markets and any opinions expressed are subject to change without further notice. This communication should not be used by the recipient as an alternative to its independent judgment or as a basis for investment decisions. The Company or its relevant organizations, employees or agents shall not be liable for any use of the content in whole or in part by any person or for any loss arising therefrom. Without the prior written permission of Great Wall Fund Management Co., Ltd., no one may distribute, reproduce, reprint or publish this report or any part of it in any form, and may not make any deletions or modifications contrary to the original intention of this newsletter. Fund managers remind that every citizen has the obligation and right to report the crime of money laundering. Every citizen should strictly abide by the relevant laws and regulations on anti-money laundering. Be careful with your investment.