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It's only very recently that he's started investing in tech stocks at all. And he's never on the leading edge. He's always been very clear about this. He doe
by PakG1 9y ago
It's only very recently that he's started investing in tech stocks at all. And he's never on the leading edge. He's always been very clear about this. He doesn't want to invest in things that are bleeding edge and that he doesn't understand, and he's proud to say it.
- juanmirocks 9y agoAbsolutely, and that’s always the good strategy. Invest only in that what you understand. He doesn’t have to understand tech nor invest in it; his numbers show it. I for one, and I assume many more here, often suffer from the bias that and consider that everything is tech. Wrong.
- tumba 9y agoBuffet is well-known for this and I often hear tech people dismiss his views as a result, but I think some people misunderstand what he is saying. Buffet is concerned with companies that will have a long term competitive advantage and thereby generate stable and growing cash returns over long periods. He doesn't generally invest in technology stocks because he says it is hard to determine which companies have a competitive advantage that will be durable enough to produce long-term returns. Look at Netscape, MySpace, or Yahoo! for companies that looked valuable but ended up not having a competitive advantage. It doesn't have anything to do with "understanding" technology---the question is the ability to pick the winners in advance.