By Jeff Pelline Staff Writer, CNET NEWS.COM May 5, 1998, 4:50 a.m. PT
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 __________________________________________________________ Dear Fellow Shareholders,
I included this article above to show you how powerful predictability over an extended period is to Mr. Buffett. The foundation of his investment style is keep it simple and invest in companies where you know that they will be around in ten years and in most cases be more profitable than they were when you first bought it. KO just sells
syrup to bottlers, thats all they do, but that syrup is in high demand as it was 100 years ago and will be 100 years from now. The difference between Ko and some other syrup producer is that they have a trademark which they have invested 100 years in marketing and in setting up a distribution channel. You can go to bed knowing that KO is selling more KO today then they did yesterday and will sell more tomorrow than they did today. We as investors are on a journey which will continue atleast until your great grandchildren retire. So when you buy KO you are actually investing for your Great grandchildrens grandchildren. So Keep the faith!!!!!!