3 ms·
Warren Buffett used furniture business to figure out Apple's worth
- sytelus 10y agoSo buffet has almost tripled-down on Apple. This is a huge departure from his value investing philosophy. AAPL is typically considered "value stock" by many when its below $100, ideally around $90. However more importantly Buffet's assertion that people don't care about high prices in smartphone business unlike in furniture business is provably wrong. Buffett has usually avoided tech companies because they are too glorified and usually a speculation, not a long term value investment. What is going on here? Is it all about his equation that takes into account cash pile, other assets with market cap? Does that really apply to tech company where you can from boom to bust in literally few months?
- draw_down 10y agoThe mention of the chain of furniture stores is almost a non-sequitur. I think he's saying something about how he can observe consumer behavior regarding price...?