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Berkshire Hathaway, the investment company of Warren Buffett, owns shares in American Express, Costco, The Coca-Cola Company, Visa and Verizon, to name just a few.
Is a notable American brand missing from the list? Amazon.
"There are a lot of games missing," Buffett told Yahoo Finance editor Andy Serwer in an interview on Wednesday.
"I would have missed Microsoft even though I had come to know Bill." [Gates] earlier or something. These are just not my games, "said Buffett.
Although Buffett did not invest in Amazon or Microsoft, he said he did not consider these terrible mistakes.
"I do not worry about the things I miss that are not part of my area of expertise in evaluation," said Buffett, who has been biased against technological actions ( other than Apple). "I missed things that were in my circle, and it's a terrible mistake.These are my biggest mistakes.You have not seen them.But … this isn''t an error because I miss Netscape or something like that. "
The octogenarian investor often stressed how important it was to have an area of expertise.
"Smart investing is not complex, although it is far from saying that it is easy. What an investor needs is to be able to correctly evaluate the selected companies. Note the word "selected": you do not need to be an expert for every company.In his 1996 annual letter to shareholders, Buffett wrote. "The size of this circle is n & # 39; Is not very important; knowing your limits, however, is vital. "
Buffett told Serwer: "Maybe 5% of companies or at most 10% of companies belong to one area, my circle of expertise, which is something I should be able to understand."
In his area of expertise, Buffett buys companies, or stocks in companies, that he considers good value.
"Your goal as an investor should simply be to buy, at a reasonable price, a partial interest in an easy-to-understand business whose profits are virtually certain to be significantly higher in five, ten or twenty years, "he wrote to the shareholders. & # 39; letter.
"Over time, you will only find a few companies that meet these standards, so when you see one that qualifies, you must buy a significant amount of stock." You must also resist the temptation You do not even think about owning it for ten minutes, and you create a portfolio of companies whose overall profits have gone up over the years, as well as the value wallet, "said Buffett.
As for Amazon, although Buffett did not invest, he has a lot of respect for the company and its CEO and founder, Jeff Bezos.
"I've always admired Jeff," Buffett told Serwer. "I mean, I met him about twenty or so years ago, and I thought it was special, but I did not know you could pbad books to what was going on over there."
Indeed, Bezos has created Amazon as an online bookseller and has turned it into an "all store", with a market capitalization of over $ 950 billion.
Bezos "had a vision and performed in an incredible way," says Buffett.
See also:
Here's how much money Warren Buffett has in his wallet
Warren Buffett: It's the best way to put money in the pockets of people who need it
Warren Buffett: Here's how to succeed
Warren Buffett, President and CEO of Berkshire Hathaway.
David A. Grogan | CNBC
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