Japanese Stocks Are Cigar Butt Investing

(May 4, 1998) Warren #Buffett was asked to comment on the investment recommendation in the Japanese stocks from the Outstanding Investor Digest. Warren said that he evaluated Japanese stock and found that most Japanese stocks have low return-on-equity. He continues that many years ago, #Berkshire Hathaway gave up the cigar butt investing which means that they won’t buy mediocre businesses at attractive price. Since most Japanese stocks have low return-on-equity, Berkshire Hathaway does not own any Japanese stocks at that time.

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