Warren Buffett ‘sees the value’ of 5G



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Warren Buffett is clearly optimistic about the long-term impact of 5G in America. And the CEO of one of his space investments says that makes a lot of sense.

“He [Buffett] sees the value of this industry, “T-Mobile CEO Mike Sievert told Yahoo Finance Live.” And again, this is something we’ve all seen in these [investor] Presentations This Week – AT&T, Verizon, and T-Mobile have all come out with business plans that are very compelling, valuable, and cash flow generating and this industry is valuable. “

Buffett, the fifth richest person in the world, announced new positions at Verizon, Chevron, Marsh & McLennan and EW Scripps in the fourth quarter of 2020, according to a recent 13-F filing with the SEC. Verizon is one of the Oracle of Omaha’s biggest new bets. Buffett raked in 147 million Verizon shares now valued at around $ 8.22 billion. (Verizon is the parent company of Yahoo Finance.)

The investment in Verizon comes on top of Buffett increasing his stake in Sievert’s T-Mobile. Buffett now owns 5.2 million shares of T-Mobile valued at $ 656 million. He initiated the position in T-Mobile in the third quarter of 2020, disclosing 2.4 million shares, then valued at $ 276 million.

The two recent positions come as the two telecom giants – along with AT&T – continue to fight for high-speed 5G positioning among smartphone subscribers. The battle was accelerated by several speeds this week, as the telecommunications trio issued bullish long-term forecasts following a closely watched C-Band spectrum auction.

Former Cisco CEO John Chambers said Buffett was on the verge of betting on the future impact of 5G technology. “5G is part of the wider Internet of Things and digitization movement as everything moves [computing]Chambers, who now runs his venture capital firm JC2 Ventures, told Yahoo Finance Live.

5G Network Mobile Internet Wireless Business concept.5G standard modern signal transmission technology.

Warren Buffett is optimistic about 5G. Credit: Getty

This uptrend is supported by various projections on the impact of 5G.

“Fast and smart internet connectivity enabled by 5G technology is expected to create an estimated $ 3.6 trillion in economic output and 22.3 million jobs by 2035 in the 5G global value chain alone,” wrote researchers from the World Economic Forum. “This will translate into a global economic value of $ 13.2 trillion for all industries, with manufacturing accounting for over a third of that output; information and communications, wholesale and retail, utilities and construction will be another combined third. “

Get more information on the dos and don’ts of Buffett investing here.

Brian Sozzi is an editor in general and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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