Warren Buffett still uses a flip phone and has no plans of upgrading any time soon. His investment style as well as how he lives his life shows that he is not one to be swayed by trends. Even one as all-encompassing as the smartphone revolution.
When asked by Apple CEO, Tim Cook, why he chooses to use what many would consider outdated technology, Buffett answered, “Well, the answer is just I’m out of touch. As long as I haven’t gotten one, the market is not saturated. The day I buy one, there is probably nobody left after that.”
Perhaps it is down to his age. Most of Buffett’s generation has been unable to fully embrace the new technologies that younger people rely on. Buffett’s hesitancy around technology doesn’t end with his loyalty to his Samsung flip-phone. The billionaire investor only owns stock in two technology companies, Apple and IBM. His reasoning is rooted in his investment philosophies.
The technology sector is not an industry that he comprehends. He is famously quoted admonishing investors not to invest in businesses they don’t understand. One cannot value what makes no sense to them.
Warren Buffett also steers clear of investments that are buzz-heavy and are the ones most traders clamor over. Instead, he favors investments that other traders might overlook. Ones that have shown value over time. Technology evolves rapidly. What is state of the art now becomes obsolete soon that leaves little potential for long-term value in the tech sector.
Whether his reasons stem from age, lack of interest in technology or Buffett prefers to live a life with as few distractions as possible, the fact that the third richest person on the planet uses an outdated phone helps hold the interests of the masses.