Berkshire Hathaway lost $110M on Paytm — Warren Buffett's Indian mistake

Berkshire Hathaway, Warren Buffett's investment conglomerate, invested in Paytm (One97 Communications) in 2018, purchasing a 2.6% stake for approximately $300 million. The investment was unusual for Berkshire, which typically avoided early-stage technology companies and emerging markets.

Paytm's IPO in November 2021 was underwhelming, and the stock declined steadily from its listing price. By 2023, Berkshire decided to exit its position. Between November 2023 and early 2024, Berkshire sold its entire stake in Paytm through a series of open market transactions, realizing a loss of approximately $110 million.

The loss was notable because Berkshire Hathaway rarely loses money on its investments, and even more rarely admits a mistake by selling at a loss. The Paytm investment was one of Berkshire's few direct investments in an Indian company, and the loss highlighted the challenges of investing in emerging-market technology companies.

Paytm's struggles included regulatory challenges from the Reserve Bank of India, intense competition from Google Pay and PhonePe, and a business model that required significant investment to maintain market share. The case became a rare example of a Buffett investment that did not work out.