AP images; Steve Marcus / Reuters
- Samsung chairman Lee Kun-hee died Sunday at the age of 78.
- The boss of the South Korean group once considered Warren Buffett as a shareholder.
- Buffett, a billionaire investor and CEO of Berkshire Hathaway, has made “hundreds of millions” from a rare overseas bet on Samsung, he revealed in an interview with CNBC in 2018.
- “It was a big, strong, good company,” he said.
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Samsung billionaire chairman Lee Kun-hee died Sunday at the age of 78 after a long illness. He once called Warren Buffett, a well-known investor and CEO of Berkshire Hathaway, a shareholder.
Lee’s father, Lee Byang-chule, founded Samsung in 1938 as an exporter of fish, fruit and noodles. Lee took over the reins in 1987 and helped develop the South Korean company into a sprawling global conglomerate with consumer electronics, microchips, home interests. Devices, medical devices, life insurance, shipbuilding and theme parks.
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There are clear similarities between Samsung and Buffett’s Berkshire Hathaway.
Both have their own businesses in a number of areas such as insurance, energy, manufacturing, construction, transportation and retail.
Berkshire also owns billions of dollars in Apple Pay, Bank America in America, Coca-Cola, American Express and other public companies.
Although Buffett has stuck with most American businesses throughout his career, there may be similarities in his decision to invest in Samsung. He made the rare foreign bet in 2018 during a CNBC interview.
Barfer bought a “fair amount” of Samsung stock when it was trading at about 1 million won (6,886) per share, Buffett said. After the group’s 50-for-1 stock split in 2018, that price will be equal to 20,000.
With the prospect of a share buyback, investors were drawn to the South Korean company’s low price and strong balance sheet.
“It was very cheap,” Buffett said. “They had a lot of cash. They haven’t bought much of their stock, but they will talk about it. “
“It was a big, strong, good company,” he added.
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The iceberg took a look at South Korea because the stocks were “ridiculously cheap” following its financial crisis in the late 1990s, meaning “a lot of bargaining was done,” Buffett said.
Investors and their team eventually destroyed it after Samsung’s share price jumped nearly 80%. Poor wins also increase their returns in dollars.
“We’ve probably made hundreds of millions,” Buffett said. “$ 500 million, million to 400 million, I don’t remember exactly,” he added.
Estimated returns indicate that Berkshire has invested about 500 500 million to 600 600 million in Samsung.
Buffett’s bet is a beautiful Rs. Samsung’s share price has tripled since Berkshire’s investment, and now has more than 1,000,000 hands in each win.
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