You can’t teach a billionaire new tricks, one would think. Or, can you? Apparently, in the case of the frugal living investor slash philanthropist Warren Buffett, a company that has the uncanny ability to retain their corporate clientele is what the Oracle of Omaha is looking for these days, which happened to land an 11 billion stock investment into IBM from him, which calculates into a 5.5% stake for Berkshire Hathaway. And if 64 million shares aren’t enough to make potential high-profile tech stocks salivate, perhaps the fact that other value stocks from tech giants such as Siemens and Broadcom could see a little love from Buffett. Silicon Valley, here he comes!
Oracle (of Omaha) To The Rescue
Computer systems design companies has seen a rather good increase this year, all things considered; yet, with so many tech stocks with low value on the market due to decreased demand from consumers, this heavy investment could send the smaller companies around Silicon Valley reeling, widening the growth gap for the larger stocks on the playing field. Since the systems design field, with a plethora of companies within it, has plenty of room for growth, it seems imminent that concentration on retention of the large customers at a high rate is what will attract many more Buffett’s who want to follow suit with an investment into the future of our technology.
Not normally a tech-friendly investor due to the incrementally unstable trends of the tech stock genre, many believe that this latest warming yet confusing act of investing could signify that technology has finally come of age to the point infusing money into further development is a worthy move. Along with the International Business Machines stock shopping, Berkshire also picked up Intel, DirecTV, CVS as well as Visa. Sure, not all are tech-related, but looking at the technological ties between them, it is plain to see why one would choose such a portfolio to put their ducats into. However, there are some companies that may surprise you that Buffett will more than likely avoid permanently like a bad habit.
Buffet Says No Go
First, there are the Microsoft possibilities that could be endless. Sure, sounds like a great investment on the surface; however, that’s a no-go because of the friendship Gates and the Oracle have. Then, perhaps there would be an interest in Google or Yahoo. Nice, but still too new for the investment genius to consider. Companies that could possibly be a great buy would be, again, companies that retain a large corporate following, such as HP and Cisco, the king of routers. Not only do these companies have a history of clean financial stability, but they have a little time-tested age behind their business and have proven to remain near the top of the tech world through thick and thin (HP gobbling up Compaq in 2002). If I had the freedom to choose a stock and buy endless shares within the vortex of technology, the latter two would be my personal top choice.
But how about other massive players in the Silicon Valley area? You have the Symantec Corporation, a leading software company offering protection for your computer against unwanted friends. Then, perhaps NVidia, producers of excellent graphics cards. Will they and the other blooming warriors from the Bay Area suffer major setbacks without any funding? Probably not, considering the bigger entities are soon going to chomp the little guys up and add them to their slew of offerings, which will fortify their own stocks. The rest will be left to either form mergers and restructure their IPO’s (if they even went public yet) or simply pack up and cut their losses. Many more micro-Buffetts are willing to invest in stability, but never uncertainty from fledgling companies.
November 18, 2011 at 3:04 am
Slayer has been around since 1981 and still going strong today. Their eleventh studio album World Painted Blood was released in November 2009. Tom Araya has said he wants to do two more albums before he considers retirement.
November 18, 2011 at 3:48 am
This is a very interesting event. I thought investing in Oracle is a obvious choice but as pointed out in the article they are still relatively new companies. I guess this is what makes him an investment genius.
November 21, 2011 at 5:53 pm
Buffet can back it up with the billions he has made over the years. I hope he continues to be a very conscious social investor during these tumultuous financial times.
November 18, 2011 at 1:27 pm
I think seeing an opportunity in the “still” developing technologies these days is one great leap and risk that’s taken by Buffett. But yes, it is absolutely not a bad decision to invest on the technology since it is one of the most hit among people nowadays.
November 20, 2011 at 6:44 am
Agree with you. Technology is among few things that continue developing nowadays.
November 21, 2011 at 5:55 pm
The new IPOs in Silicon Valley has created some momentum around technology equities. I am interested to see if this carries through in the next 3-6 months.
November 20, 2011 at 2:23 am
Warren buffet is an awesome guy, his biography inspires me, his story inspires me, he inspires me.
November 21, 2011 at 5:57 pm
Andy, I encourage everyone to read Buffet’s biography. His humble lifestyle even though he is a bonafide billionaire is truly amazing!
November 24, 2011 at 4:31 am
I like Warren Buffett and if he chose tech stocks to invest in, then I believe it will probably be a smart choice to invest in for others as well.
Mr. Buffett has enough proof that he knows what he is doing.
I’m just glad it’s going well with the tech sector because I just love everything tech. And I look forward to the next thing that will enrich my life and make it easier.
November 28, 2011 at 6:11 pm
Hopefully this is a sign that the tech sector is strong and healthy….and not a bubble waiting to burst.
December 25, 2012 at 8:47 pm
Buffet picks stocks that pay a dividend and increase the dividend year after year. Ibm has done this and the stock price goes up also. microsoft stock does not move up or has paid dividends only a few years now.
Buffet likes stocks that pay him income and stocks that go up in value over the years. he likes dividend aristocrats. most tech stocks do not do that.
October 29, 2013 at 7:57 pm
This is great information! Buffet is really smart about his investments, and this article really captures how he does investments. These are great recommendations to invest in. Thanks for writing this,
November 17, 2013 at 12:30 am
Excellent and authentic information about perfect stock market. I have huge positive thinks about Oracle but after your argue and information I think you are really true about that and they are really overall new company. Thanks for your hard working on it.