Warren Buffett, the legendary investor, says that he does not regret buying shares of the underperforming IBM, and even more importantly, he does not wish that he had purchased Apple shares instead.
The 50 year leader of Berkshire Hathaway, Warren Buffett, provided these comments in an interview following the Berkshire Hathaway annual meeting that took place in Omaha Nebraska.
Buffett considers IBM one of its big four stock positions, and this list also includes Coca-Cola, Wells Fargo and American Express. At the end of 2014, Berkshire Hathaway owned 7.8% of IBM. Warren Buffett has never really been a fan of technology stocks, but opened a position in IBM back in 2011. IBM has trailed the market over the last few years.
Warren Buffett is a big fan of buying and holding onto stocks, and he said that he likes it when the stock price drops so he can purchase more shares. Buffett believes that individual investors should subscribe to a buy-and-hold investing strategy. When Buffett was asked if he felt the stock market was overvalued and ready for a correction, Buffett stated, “If you are worried about a correction, you shouldn’t be in the market.”
Warren Buffett, affectionately known as the Oracle of Omaha, is in the market to make acquisitions, and he said that he would like to make one “sooner rather than later.” During the Berkshire Hathaway annual meeting held on May 2, 2015, Buffett said that he was very happy with the recent Berkshire Hathaway acquisition of Van Tuyl, the auto dealership, and said that he would like to purchase even more local car dealerships.
In addition, Warren Buffett said that he had an interest in acquiring a company in Germany in the next five years. During the annual meeting, Buffett was criticized about his recent 3G Capital partnerships, in which Berkshire Hathaway has teamed up with them to purchase Kraft and Heinz. Some shareholders spoke out against the cutting of jobs and costs that 3G practices at the companies that they acquire, but Buffett fully defended the business practices of 3G Capital.
Buffett said that he is looking to make more investments into his existing businesses this year, and will spend money in order to comply with the new federal rail safety rules that Burlington Northern Santa Fe must contend with, and he also intends to make further investments into Berkshire Hathaway Energy so he can invest further into renewable energy. Buffett did caution that renewables aren’t the best investments for individual investors.
When speaking about the economy, Warren Buffett thought it would be difficult for the Federal Reserve to push interest rates higher while the rates are still negative in Europe.
Warren Buffett, who has typically been anti-technology throughout his career, still uses a flip phone. When asked if he would like to get a smart phone for his next birthday, Buffett said, “I haven’t thought about it.”