Berkshire Hathaway chief
executive Warren Buffett, the nation's second-richest man behind Bill
Gates, doesn't plan to invest in companies such as Microsoft and Intel because he doesn't know enough about the industry.
The comments from the billionaire financier, dubbed the Oracle of Omaha,
came at Berkshire Hathaway's annual stockholders meeting yesterday.
On whether the firm will invest in computer-related companies,
Bloomberg quoted chairman Buffett as saying: "The answer is no, and it's
probably unfortunate. I don't know what that world will look like in 10
years, and I don't want to play in a game where the other guy has an
advantage over me."
Added Charles Munger, Berkshire Hathaway's vice chairman: "Whatever you
think you know about technology, I probably know less."
Buffett, a friend of Gates, is one of the best known investors who has
missed out on the big runup in tech stocks. Instead, he has chosen to
buy shares such as Coca-Cola, McDonalds, and Gillette--businesses that he
understands.
Microsoft's market value now exceeds that of Coke, but Berkshire
Hathaway (built on a portfolio of Buffett's favorite investments)
remains a highly successful buy--for those who can afford to pay $69,100
for its Class A shares.
When it comes to Internet stocks such as Yahoo, Buffett, 67, was much more
skeptical.
"If I taught a class, on my final exam I would take an Internet company
and ask [my students], 'How much is this company worth?'" the Associated
Press quoted Buffett as stating. "Anyone who would answer I would
flunk."
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