After a long life far from New York and Tech Share investments, Omaha’s guru, Warren Buffett, comes out with an unusual decision: Investing in many companies that he usually defined as money-wasting companies.
The reason he previously stayed far from these tech investments is because he always said he didn’t know too much about them. It didn’t mean he would always keep his capital far from these deals.
The long friendship he always had with Microsoft Co-Founder, Bill Gates or the incorporation of the two, Todd Combs and Ted Weschler, doesn’t necessarily mean they are the main reasons for changing his mind. As a guru of wise investments, he foresees what other people can’t. The fact that he built an $18 billion stake in Apple says a lot.
After studying Warren Buffett’s investment history and keeping an eye on his long-term career decisions, I arrived at a point:
Warren Buffett loves to bet on companies with amazing quality products. He always sees the potential in quality products that don’t need to win people’s trust. According to newspapers like Wall Street Journal, the $800 billion evaluation puts Apple Corporation on the top of the world as the biggest and strongest company in global economic history.
Even the bad news about Apple investors that were selling their shares didn’t scare the Guru of Omaha. In fact Berkshire Hathaway recently became the largest Apple shareholder, reaching a 2.5% stake, with 9.81 Million shares, according to Forbes. Investing in Apple inflated Berkshire’s bank account for about $1.1 billions in revenues in 2017.
Betting on Apple, for Berkshire, was like going to the lottery with the winning numbers in your pocket. The fact that Warren Buffett thinks deeply is an amazing feature.
The point I want to highlight?
You may not know too much about a field. That might be not too good, but when you have in front of you a company with an amazing marketing/internal organization or huge development program, along with a positive product history, you probably would even consider going Tech.
After many years as a loyal customer of Cupertino’s many products, I can’t remember once when the products stopped working for more than 1 day or created problems. Maybe that’s why a man like Warren Buffet with a strong hesitation of Tech and other similar fields, decided to change his way of seeing things.
Warren Buffett in my opinion just took an obvious chance that, till now, showed many people were wrong. The speculation sometimes destroys you, but if you are The Guru of Omaha, the Tech field might be an unlikely winning bet.