Jun 25, 2009
Zhao Danyang on Lunch with Warren Buffett
I’m sure you all remember that Zhao Danyang of Hong Kong’s Pureheart Asset Management won the Glide Foundation’s auction for lunch with Warren Buffett. Reuters has an article detailing the lunch:
SHANGHAI (Reuters) – When Zhao Danyang agreed to pay more than $2 million a year ago for lunch with Warren Buffett, the Chinese hedge fund manager was plagued by puzzles he hoped the Oracle of Omaha could help unravel.
But Zhao spent most of Wednesday’s three-hour New York steakhouse lunch listening to the world’s most celebrated investor to see if their two minds think alike.
“Buffett told me: ‘you’re lucky to be in China’” Zhao said.
“China has so many clever people, there’s no doubt that someone will stand out in the game of investing.”
Zhao’s bid for the lunch was three times the previous record, and the largest ever for the charity auction sponsored by eBay Inc. It was also a sign of how Chinese fund managers want to share the limelight with top investors as its economy takes center stage in a global recovery.
The expensive lunch was an inexpensive advertising campaign for Zhao, 37, whose Hong Kong-based Pureheart Asset Management Co had a 600 percent return during the past six years.
He brought a 10-year-old copy of Buffett’s book with him as he and six friends lunched with the Berkshire Hathaway Inc BRK.B chairman at the Smith & Wollensky’s steakhouse in Manhattan.
“Buffett to me is what Benjamin Graham is to Buffett,” Zhao said, referring to the economist and investor considered the first proponent of value investing.
“I thank him and I respect him. But I don’t adore him, because we’re all human beings…”
“…After witnessing this economic cycle, and the bubble bursting, I now have a better understanding of many economic issues,” Zhao told Reuters by phone from New York.
“Buffett agreed with some of my views, which emboldens me to make some big bets in the future.”
Zhao said he adopted Buffett’s value investing philosophy after reading a book about him a decade ago.
“The lunch was really worthwhile. It’s priceless,” said Zhao.
“Unlike Buffett, I’m still young and haven’t witnessed many cycles. His views will benefit my whole life.”
In an expression of gratitude, Zhao gave Buffett a bottle of Moutai, a fiery Chinese liquor, and some Chinese medicine.
He also presented several annual reports of Beijing-based retailer Wumart (8277.HK), which Zhao said is heavily weighted in Pureheart’s portfolio. “I like this company very much, and I hope Buffett can give it his thoughts.”
Fund manager Zhao aspires to be “China’s Buffett” (Reuters)
It will definitely be interesting to see who wins this year especially with all the talk of Buffett losing his luster. I wouldn’t pay too much attention to that kind of talk though, it seems to happen every 10 years or so and Buffett always manages to be vindicated afterwards.
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