As the world’s best investor, Warren Buffett isn’t known for his holdings in the technology industry.
He used to say that he avoided tech altogether because he didn’t understand the industry well enough.
When Buffett first acquired the stake in IBM, he believed that the company would adapt to the changing environment in the tech space, as it had done many times before in its life so far.
But the IBM investment did not work out as well – as of today, Berkshire holds no shares.
It is said that Warren Buffett gave up IBM because he saw a big value in Apple.
Buffett’s Berkshire Hathaway acquired 887 million shares or 5.4 percent stake in Apple between 2016 and 2018.
The stake cost the conglomerate $36 billion, which was worth $160 billion in January when the iPhone maker hit the $3 trillion milestone.
Although Amazon has been one of the best-performing mega-cap stocks over the last decade, it took a little while for Berkshire to see the light. He called himself an “idiot” for not buying Amazon earlier.
Warren Buffett also admitted that he made the wrong call in not buying Google.
In this video, he talks about why he was wrong about these big tech companies in his earlier investments.
Warning: This video is to show you Buffett’s opinion about big tech companies. Please do your research before doing any investment. A good balance between return and risk is the key to investment success.
Source: Finance Jane.