When people asked Warren Buffett why he didn’t invest in technology stocks, he famously replied that he didn’t invest in companies he didn’t understand.
But later he admitted that might be a mistake.
Buffett’s IBM debacle began in November 2011 when he said on “Squawk Box” that Berkshire Hathaway bought 64 million shares at an average price of $170 each, valuing the stake at the time at $10.7 billion.
And then between 2016 and 2018, Berkshire Hathaway made the transition out of IBM and into Apple. The company acquired 887 million shares or 5.4 percent stake in Apple.
In January 2022, the stake was worth $160 billion when Apple hit the $3 trillion milestones.
In this video, Buffett explains why he went against his no-tech-company rule and bought IBM and Apple. He also talks about Amazon and Jeff Bezos.
Warning: This video is to show you Buffett’s opinion about 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.
