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Warren invests in what he knows. The fact that he doesn't buy technology stocks is more likely due to the fact that he doesn't know much about technology. At t
by kadavy 15y ago
Warren invests in what he knows. The fact that he doesn't buy technology stocks is more likely due to the fact that he doesn't know much about technology.
At this year's shareholder's meeting, someone asked him and his business partner, Charlie Munger, which industry they wish they knew more about. Charlie said "technology."
- imjustatechguy 15y agoI didn't mean to imply tech IPO -- I did intent to refer to any IPO. Warren Buffet doesn't invest in IPOs as far as I've read. It makes sense because these are very hyped events that are designed to be the opposite of boring or overlooked. Investing in IPOs is very much a gamble over which the the investor has no control. It is like buying a lottery ticket in many cases. Warrren Buffet buys into companies in such a way that he get's control and usually those companies are struggling and need a management overhaul in order to be successful and have a better long-term focus. I can imagine Groupon crashing and burning and then someone like Warren Buffet or another takeover happening and then its rebuilding. But buying into a hyped IPO before a fall is not at all Warren Buffet's investing strategy.