Warren Buffett said yesterday that he would not buy shares of technology giants (Apple and Google), but he do not underestimate, and said that International Business Machines Corp (IBM) is a better investment for his company, Berkshire Hathaway.
“I would not be at all surprised to see them paying too much money in ten years, but Iwould not buy any of them,” Buffett said about Apple and Google’s annual shareholder meeting of Berkshire in Omaha, Nebraska. ”I certainly do not underestimate them”.
In contrast, Berkshire at year end was 11.75 billion dollars in shares of IBM, its second largest shareholder. ”The chances of being totally wrong at IBM are probably smaller, at least for us, than the chances of being totally wrong on Google or Apple,” said Buffett.
The revelation in November that Buffett bought shares of IBM surprised many investors, given its usual aversion to technology stocks. Even in the annual report of Berkshire, which lists the criteria for acquisitions, Buffett said he preferred ”simple business (if there is a lot of technology, we do not understand).”
Buffett controls most of Berkshire’s investment portfolio. He hired two portfolio managers, Todd Combs and Ted Weschler, to manage part of Berkshire’s investments.