Tuesday, November 5, 2013
Warren Buffett & Technology Stocks
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 0% 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 believe that hedge funds and other prominent investors' best stock picks exhibit market-beating potential, so it's worth paying attention to these developments.
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 investm
ents 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.