Buffett’s Berkshire Breaks Tradition with $600 Million Investment in Fintech

Photo: Visual China

October 31 (ChainDD) Buffett-led Berkshire Hathaway invested about $600 million in two financial technology companies which specializes in emerging markets, which were made by Todd Combs, one of Berkshire’s two portfolio managers, according to the Wall Street Journal.

One of the above investments happened in August, where Berkshire purchased India’s largest mobile payment platform Paytm’s parent One97 Communications’ stakes with about $300 million. Another investment is to buy shares in an initial public offering (IPO) last week for StoneCo , the fourth largest Brazilian payment processor by volume.

The Journal noted to invest in financial technology is a departure from Berkshire’s usual way. After all, Berkshire is well known by its blue-chip companies such as Coca-Cola and acquisitions of utilities and insurance companies. And Buffett once said tech investments are outside his area of expertise.

According ChainDD’s previous brief news, around this year’s Berkshire annual meeting, Buffett said Bitcoin is more game than investment, and it is like rat poison. In August, Berkshire confirmed it had invested One97 Communications but added Buffett didn’t involve in the investment.