Berkshire Hathaway Invests 600 Million Dollars In Two Fintech Payment Firms. Berkshire Hathaway is a multinational conglomerate holding company. American business magnate, investor, speaker, and philanthropist Warren Buffett found this company. He invested nearly $600 million in two fintech payment firms focused on emerging markets: Paytm and StoneCo. However, the Wall Street Journal (WSJ) on Oct 29 covered this.
Berkshire Hathaway invested $300 million in India’s largest mobile-payments service, Paytm which has more users than Paypal. By purchasing the shares in an initial public offering (IPO) for Brazilian payments processor StoneCo, the country’s fourth-largest volume.
Berkshire Hathaway Invests 600 Million Dollars In Two Fintech Payment Firms. One of Berkshire’s two top money managers, Todd Combs guided both the investments. These two new investments into two different fintech payment companies suggest that Berkshire Hathaway may soon join the crypto community.
Buffett’s Berkshire Hathaway is best known for investing in the U.S’ major firms like IBM, Coca-Cola, and Wells Fargo. Also, it has $711.932 billion in assets under management as of 2018. Up until now, Berkshire is cautious in investing in fintech firms. Such substantial amounts invested in these two fintech firms. They are major players in their local markets, seems to perfectly fit Buffett’s investment strategy model.
Buffett, who is well known for his aversion towards cryptocurrency said in the past: “Bitcoin isn’t an investment as it doesn’t produce anything.” He believes that the “rat poison is neither a currency nor a way of investing.”
Todd Combs (as of 2010) and Ted Weschler (as of 2011) are the two top money managers of Berkshire Hathaway and are the key people at the firm for investments. David Kass, a professor at the University of Maryland’s Robert H. Smith School of Business and a Berkshire shareholder states “Todd and Ted bring additional expertise to the table, they’re broadening the perspective of Berkshire and broadening the opportunities where they would look to invest.”
Finally, it is clear that the organization is attempting new investment strategies to expand its investable universe in new ways. Buffett has openly expressed his dissatisfaction with the lack of opportunities. Also stated his views to discover new places to invest the company’s money.