SoftBank’s Funds Post $27Bn Loss, CEO Calls For A More Conservative Approach

SoftBank’s Funds Post $27Bn Loss, CEO Calls For A More Conservative Approach
geralt / Pixabay

It has been a dire fiscal year for tech stocks, with the NASDAQ down by 27% in 2022. This is the stage for the crash of SoftBank Group Corp (TYO:9984)’s Vision Funds, which posted a record $27 billion loss in the year ended March, prompting CEO Masayoshi Son to take defense.

Play Quizzes 4

Disappointing Year

Upon the release of SoftBank’s fiscal year results, Son acknowledged the Japanese corporation would be more careful when choosing deals, be more strict when it came down to identifying investment opportunities, and focus on boosting returns from its portfolio firms.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q1 2022 hedge fund letters, conferences and more

How Value Investors Can Win With Tech And “Fallen” Growth Stocks

Valuation Present ValueMany value investors have given up on their strategy over the last 15 years amid concerns that value investing no longer worked. However, some made small adjustments to their strategy but remained value investors to the core. Now all of the value investors who held fast to their investment philosophy are being rewarded as value Read More

At an earnings presentation in Tokyo, CEO Masayoshi Son said: “We, SoftBank, should be taking defense.”

Son pointed to the chaos in the market provoked by soaring inflation, Russia’s invasion of Ukraine, and the effects of the Covid pandemic.

SoftBank’s portfolio includes publicly-traded companies such as ride-hailing startup Grab Holdings Ltd (NASDAQ:GRAB) and e-commerce firm Coupang Inc (NYSE:CPNG) —whose IPO’s were soundly successful last year.

However, amid the convoluted market, shares of both Grab and Coupang have dived by over 60% in 2022.

Both add to the biggest SoftBank disappointment, DiDi Global Inc – ADR (NYSE:DIDI), whose shares have plummeted 70% this year. The ride-hailing company was the subject of a vicious crackdown by Chinese regulators, following a blockbuster IPO in 2021.

“Fundamental Flaw”

China’s tougher stance on tech companies prompted SoftBank to be more conservative when investing in companies in the Asian giant, with Son saying the company still identifies investment opportunities in this market but conceded it would be more careful.

“We believe there are still a lot of great companies [in China], for those companies we would still like to invest, but [a] relatively smaller size.”

Kirk Boodry, an analyst at Redex Research, told Bloomberg: “There is much less visibility on this part of the portfolio, particularly at Vision Fund 2 where many of these investments are smaller or at an earlier stage… SoftBank will likely take meaningful losses in the private portfolio too.”

Amir Anvarzadeh of Asymmetric Advisors said, “Softbank’s entire business structure is dependent on one key assumption and that is ever-rising stock prices.” This “fundamental flaw” has been revealed by the bear market.

Updated on

Cristian Bustos is senior editor for Previously, he was the news correspondent in Germany for Colombian radio broadcast Blu Radio, where he covered the 2017 German federal election and the 2017 G20 Hamburg summit. He was also public relations consultant to EY and HAYS, and has covered a wide range of topics including business, finance, and international relations, as well as verticals such as automotive, aerospace and renewable energy. Email him at
Previous article Alaska Stimulus Checks: Senate Approves $5,500 In Cash Payments
Next article These Are The Top Ten Holdings Of Donald Yacktman

No posts to display