Masayoshi Son, the founder and Chief Executive Officer of the Japanese investment holding conglomerate SoftBank, has experienced a period of fluctuating fortunes, but he emphasizes a return to financial stability.

This message was the central theme of his appearance at a virtual DealBook conference held earlier today, where Son, speaking from Tokyo, expressed optimism regarding various topics, including the future of TikTok (SoftBank holds an investment in its parent company, ByteDance); the potential for WeWork’s former co-founder Adam Neumann (a venture where SoftBank has incurred substantial losses – “I have strong faith that he will achieve success at some point”); and SoftBank’s capacity to make strategic investments, facilitated by a significant asset divestment that Son states has yielded the company “$80 billion in available capital.”

To ensure you didn’t miss any key points, we’re presenting a summary of the highlights, beginning with the factor causing the “optimistic” Son to feel “pessimistic in the near future.”

Regarding COVID-19:

Son recounts that in March, he was accused by medical experts of inciting alarm after sharing his concerns about the coronavirus on social media.

SoftBank subsequently established and operates Japan’s largest private testing facility, within a nation of 126.5 million people currently reporting approximately 1,300 new cases daily (in contrast to the U.S., with a population of 328 million, which is currently experiencing over 166,000 new cases each day).

Son attributes Japan’s success in managing the pandemic to the proactive behavior of its citizens, noting that they “consistently wear masks independently…they are highly aware of this.” However, he cautioned that “any unforeseen event” could occur “over the next two to three months” before a vaccine is widely available. A “major organization could fail,” triggering a cascading effect, similar to the bankruptcy of Lehman Brothers in 2008 and the subsequent disruption of the financial sector.

“Numerous possibilities exist in this situation,” Son stated, adding, “The progress with vaccine development is encouraging, but I remain prepared for the most challenging scenario, which is why we currently hold nearly $80 billion in cash reserves.” Son further explained that SoftBank possesses “sufficient funding,” but that “maintaining a strong cash position is crucial during times of crisis.”

Concerning the substantial cash reserves:

Andrew Ross Sorkin, the interviewer, did not inquire about, and Son did not mention, Elliott Management, the hedge fund believed to be SoftBank’s second-largest shareholder and reportedly instrumental in urging Son to sell assets and repurchase company shares, the price of which had declined sharply earlier in the year.

Son clarified that his decision to acquire SoftBank shares at a depressed price was independent, explaining that when the stock value fell by nearly 70% in March, “I realized, ‘This is an ideal opportunity to repurchase shares, as the discount to the underlying asset value exceeded 70%, reaching around 75%.’ I could acquire our own company for a quarter of its intrinsic worth. I thought, ‘I should buy, I should buy it.’ ”

Son did address whether the asset sales were also intended to provide additional capital for SoftBank’s existing portfolio companies – some of which have faced difficulties during the pandemic – or if he anticipates opportunities to invest in new ventures.

Predictably, Son stated that “If we can invest in promising early-stage companies, and allocate more resources to those opportunities, I will be proactive,” observing that the valuation of so-called unicorns seeking funding has become more favorable.

Regarding the WeWork situation and lessons taken:

Turning to the subject of unicorns, Sorkin raised the topic of WeWork, the co-working company into which SoftBank invested at least $18.5 billion – “billions” of which were subsequently lost, as acknowledged by Son.

Sorkin asked about the lessons learned from SoftBank’s involvement with the company, but Son, who earlier stated he embraces his errors to learn from them, did not directly admit any shortcomings on SoftBank’s part, instead focusing on co-founder and former CEO Adam Neumann, who was removed from his position approximately a year ago.

Son explained: “I believe this is a lesson Adam Neumann is learning himself, recognizing his mistakes. He is an intelligent individual. I think he acknowledges his errors. He’s a bright man, an assertive leader, capable of inspiring others, but he made some missteps. Everyone makes mistakes.”

Son went on to say that, “I share in the responsibility for his mistakes,” before elaborating on Neumann, stating: “I still hold him in high regard. I still respect him. I am confident he will achieve great things in the future. I firmly believe he will be very successful. And he would say he has gained valuable insights from his past experiences.”

Concerning the Trump administration’s attempts to prohibit TikTok in the U.S.:

Son also has a significant interest in TikTok’s success. Approximately two years ago, SoftBank led a $3 billion investment round in TikTok’s parent company, ByteDance, which was then valued at $78 billion and is currently seeking new funding that would value the privately held company at a substantial $180 billion, according to recent reports. (This represents a deal characteristic of SoftBank’s investment strategy, and it will be interesting to observe whether SoftBank will lead this subsequent round at a valuation more than double the previous one.)

Regarding the pressure ByteDance faced this fall to divest its TikTok U.S. operations, with Oracle and Walmart both participating in the bidding process, Son described it as “unfortunate” if a service that “many people enjoy” were to be discontinued due to “political concerns [regarding] something that is not actually occurring.”

Son insisted that, based on his conversations with ByteDance’s leadership, the company has no intention of compromising the privacy of its users or the national security of the countries where TikTok operates, including the U.S., India, Japan, and European nations.

He added that for regions with ongoing concerns, “there is always a solution, such as establishing servers in each country to provide politicians with greater assurance regarding national security…there is always a technical solution.”