American business magnate Warren Buffett also known as the ‘Sage of Omaha’ in his annual letter to shareholders gave an insight into his view about technology and how he goes about his business. According to a report by ZDNet, Buffet had a brief fling with Oracle, but he held on to all his Apple shares.
The report goes on to add that Buffett’s much-publicized investment strategy is to buy shares from companies of which he has a clear understanding and keep them for as long as possible. But he broke his rules and sold away all his Oracle shares worth $2.1 billion. The Oracle shares which made its way in the third quarter report vanished by the time 4th quarter reports came out.
The topic cropped up during an interview with Becky Quick of CNBC. Speaking to Becky Quick, Buffett said, “After I started buying [Oracle], I felt I still didn’t understand the business. I actually changed my mind in terms of understanding it, not in terms of evaluating it. Oracle is a great business, but I don’t think – particularly after my experience with IBM – I don’t think I understand exactly where the cloud is going.”
During the conversation, Warren Buffett also confirmed that he has not sold his Apple shares and said that he would have bought more if it had been cheaper. He further went on to reveal that one man in the office sold his 3 million shares. This guy was the investment manager who started buying shares for Berkshire Hathway before Buffet joined in.
Apple is Berkshire’s single biggest holding and Warren Buffett own shares worth more than $44 billion, which is around 5.4 percent of the company. Buffet said that he would avoid having more than 10 percent of shares.
Berkshire Hathway is also known for not investing in technology stocks and that’s the reason why they are in the news whenever it does so. Recently, the company also bought 4 million Red Hat shares worth $733 million and this might be a profitable proposition if IBM’s takeover of Red Hat goes through.