Berkshire Hathaway Bets Big on Alphabet, Signaling a Shift Into Tech Investing

Under former CEO Warren Buffett, Berkshire Hathaway (NYSE: BRKB) (NYSE: BRKA) was never a big investor in the tech sector. Buffett always believed that we should invest in what we know, and he didn't believe he understood most tech stocks well enough to buy them.On top of that, given the pace of innovation, he believed that tech companies not only got disrupted too quickly, but also that disruption was in fact the tech business model itself. With modest moats and business models having to constantly evolve, he found projecting a company's long-term earnings and cash flow to be way too difficult.Buffett finally started to invest in the sector in 2011 with International Business Machines, given its more predictable business model, although the stock woefully underperformed. He later hit pay dirt with Apple, but he viewed it much more as a consumer goods company than a tech company, which is a fair point. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool