Japanese conglomerate SoftBank Corp (OTCMKTS: SFTBY) has posted a $21.6 billion quarterly loss on its Vision Fund, one of the highest in its history, in the wake of its takeover of British chip designer ARM Holdings Plc (LON: ARM) and aggressive investments in technology companies around the world. However, SoftBank’s CEO Masayoshi Son said that he is not bothered by the high losses, because they are part of a larger strategy to invest heavily now and reap rewards down the road. It remains to be seen if his strategy will pay off over time.
One of SoftBank’s Biggest Losses Came From its Vision Fund
SoftBank’s Vision Fund, which began in 2017 and invests in high-growth technology companies, has been impacted by the rapid increase in inflation in response to U.S. Federal Reserve and other central banks hiking interest rates. Masayoshi Son, SoftBank’s outspoken founder, and the mastermind behind the Vision Fund said in May that the company would adopt a more conservative strategy after suffering losses totaling 3.5 trillion Japanese yen at its investment unit for the previous fiscal year.