WARREN BUFFETT Quote : Rule No.1: Never lose money. Rule No.2: Never forget rule No.1.
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Thursday, November 7, 2013

Warren Buffett Invests in Tech Stocks, But Probably Not Twitter

If Warren Buffett wouldn't touch Facebook or Twitter – what tech stocks would he buy?

It’s widely assumed that Warren Buffett doesn’t invest in technology stocks, but in recent years, this belief has contrasted with reality. After accounting for zero percent of his equity portfolio at the end of 2010, the tech sector now makes up one sixth of Buffett’s stock holdings. At Insider Monkey, we’ve discovered that hedge funds and other prominent investors’ best stock picks exhibit market-beating potential, so it’s worth paying attention to these developments.

Read more on Warren Buffett: Value Investing: The Most Profitable Stocks in Warren Buffett's Portfolio

In the case of Buffett and Berkshire Hathaway, they're not your typical technology investors. They follow a very strict set of rules when selecting investments in this space, which, through our observations, boil down to finding tech companies that: (1) trade at very cheap multiples, (2) pay a dividend, and (3) have sustainable product offerings that will safeguard their survival over the next 15 to 20 years.
Warren Buffett