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Do you have sources where he specifically says Apple, Google, and Facebook are "far too risky of investments?" Genuine question. I know he largely avoids tech
by imjk 13y ago
Do you have sources where he specifically says Apple, Google, and Facebook are "far too risky of investments?" Genuine question. I know he largely avoids tech stocks as they're not in his core competency, and he also justifiable avoided investing in the dotcom bubble.
- valarauca1 13y agoCNBC from 2012 http://www.cnbc.com/id/47307200 http://www.cnbc.com/id/47307200
- torbjorn 13y agohttp://www.cnbc.com/id/47307200 http://www.cnbc.com/id/47307200 http://www.bizjournals.com/sanjose/news/2012/05/07/warren-buffett-thinks-apple-google.html http://www.bizjournals.com/sanjose/news/2012/05/07/warren-bu... http://online.wsj.com/community/groups/market-view-845/topics/warren-buffett-doesnt-see-apple http://online.wsj.com/community/groups/market-view-845/topic...
- obelos 13y agoIt's oversimplifying to say he avoids them because they're not his core competency; he avoids them because valuing them is not anybody's core competency. Their value comes from products that are too lacking in historical context to lend them the degree of reliability he's aiming for in an investment. He also seeks out companies whose stock has a history of producing ongoing income for investors in the form of a regular dividend. Tech companies rarely offer this. Without a dividend, the value an investor derives from the stock hinges solely on its current price. Dividend income diversifies this, providing a return even if the stock remains flat and buffering losses if you need to sell short.