Warren Buffett is Wary of Apple's Stock

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Posted March 21, 2011 at 1:03pm by iClarified

Warren Buffett, the billionaire American investor, says he is wary of investing in electronics makers such as Apple Inc. because their prospects are harder to predict than Coca-Cola, according to Bloomberg.

"We held very few in the past and we're likely to hold very few in the future," Buffet said referring to electronics makers. Coca-Cola is "very easy for me to come to a conclusion as to what it will look like economically in five or 10 years, and it's not easy for me to come to a conclusion about Apple," he said.

"Even though Apple may have the most wonderful future in the world, I'm not capable of bringing any drink to that particular party and evaluating that future," Buffett said. "I simply look at businesses where I think I have some understanding of what they might look like in five or 10 years."

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Lamont - March 22, 2011 at 10:32am

Warren is only saying that the internet and software in not his area of expertise and understanding. Therefore he does not invest in this realm. He is is not giving an opinion on the value of an investment in AAPL. He is being true to the advice "invest in what you know"

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Jo - March 21, 2011 at 9:02pm

I agree with xntrick. While Apple's future may seem "hazy" to a man of Mr. Buffet's age I do believe that hundreds of years from now this will be called the electronic age and Apple will be a part of that history. I don't believe Apple has hit it's peak yet, mainly because it has made so many innovations on new technology which has not seen it's full potential yet! I believe Apple should be given a chance at least. My Grandmother also thinks the "LP" is coming back to mainstream music consumption. Just throwing that out there!

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xntrick - March 21, 2011 at 4:01pm

Mr Buffet's comments show his age & the time in which he grew up. To be certain he has been a historically brilliant investor & with these comments I don't believe he is casting doubt on Apple but rather showing his lack of understanding of the future of the computer/electronics industry. I believe there will be a new investment guru to whom Mr Buffet will inevitably willingly or unwillingly pass his baton to. Of course there will always be a place in the investment world for expertise in these historically solid investment prospects but it becomes more imperative as time goes on that an investment expert in the electronics market emerges. Until one does, speculation will remain little better than guessing.

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Roy - March 21, 2011 at 5:13pm

No he is totally correct. If you would have invested in Sony before it blew up you would have made quite a bit of money, but if you purchased at sony peak you would have lost money. Buffet is saying that apple is at it's peak right now, which is what I believe too.

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retrotech - March 21, 2011 at 2:55pm

if he would had said this 10 years ago today he would have been the stupidest person alive.

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farpthor - March 21, 2011 at 4:41pm

Instead of that, he's one of the richest...

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