Here's Why Warren Buffett Changed His Mind About Tech Stocks
Written by Dana George for The Motley Fool -> One of Buffett's philosophies is to invest in businesses you understand. Another of his beliefs: Invest in companies with competitive moats. It's no secret that Warren Buffett, one of the greatest investors in history, long avoided
One of Buffett's philosophies is to invest in businesses you understand.
Another of his beliefs: Invest in companies with competitive moats.
It's no secret that Warren Buffett, one of the greatest investors in history, long avoided technology stocks while CEO of Berkshire Hathaway . Buffett was never shy about admitting that he didn't understand tech.
But eventually he started putting the conglomerate's money into tech. Here's a look at what it took for the Oracle of Omaha to add tech to his impressive portfolio.
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Warren Buffett taught a lot of investors a lot of things over the decades. Here are three points that stand out to me.
I can see why Buffett loosened his opposition to tech stocks over the years. Some large tech platforms now fit his traditional criteria of businesses that are understandable and have durable moats.
Of course, Buffett and Berkshire didn't invest in every technology company. I think Buffett looked for ones he thoroughly understood. With his habit of looking for "moats over momentum," he surely had no interest in hyped-up flashes in the pan. He wanted to know that the company he invested in had a sustainable competitive advantage that could protect profits over time.
