Warren Buffett, the Oracle of Omaha, is renowned for his clever stock picks and his investing prowess. He’s beaten the market more often than not, but even so he does have some quirks. One of Buffett’s most renowned quirks is his general aversion to technology-related stocks, which he has admitted he doesn’t actually understand.
In fact, if you look at Berkshire Hathaway’s portfolio and list of companies, you’ll see that despite the vast number of companies Berkshire is involved with, most of them fall within only a few categories. Buffett often refers to this as his ‘Circle of Competence.’
However, in recent years, Berkshire Hathaway has slowly started to dip its toes into the tech stock world with the purchase of shares in three different tech companies.
Here are the three tech stocks that Buffett owns:
At the time of writing, Buffett currently owns around 133 million Apple shares ($18.7 billion value). The stocks were confirmed to be first purchased by Buffett’s proteges Todd Combs and Ted Weschler last year, and since then the company has increased its stake. Buffett himself stated that he liked the “stickiness” of the company and admired the loyalty of Apple’s customer base. In fact, he may buy even more stock in the future.
Berkshire began purchasing IBM stock in 2011 and to date owns more than 81 million shares ($14.1 billion value). This purchase was made by Buffett reportedly after he toured the IT departments in the many companies he owned and found that many of them use IBM solutions. So, accordingly, he purchased stock in the company.
3. Sirius XM
This stock is the most recent addition to the Berkshire technology stocks, and it’s unclear whether the purchase was made by Buffett himself or one of his two proteges. As of the fourth quarter of 2016, Berkshire owned around 166 million shares ($850 million value) in the company. Sirius XM, however, is probably one of the least surprising additions as surveys estimate that 3 out of every 4 new cars come with Sirius XM, making the company the leader in its field.