What Warren Buffett Sees in Berkshire Hathaway’s New Amazon Stake

What Warren Buffett Sees in Berkshire Hathaway’s New Amazon Stake

What Warren Buffett Sees in Berkshire Hathaway’s New Amazon Stake

"One of the fellows in the office that manage money. bought some Amazon", Buffett, Berkshire's chairman and CEO, told CNBC, likely referring to one of two investment managers, Todd Combs or Ted Weschler, at the company. Most investors tend to follow anything and everything that Warren Buffett says. Now one of Buffett's deputies is willing to put money behind the tech giant. The news led to Amazon shares surge 2.3 per cent in the pre-market trade on Friday.

Buffett has championed Amazon and its CEO, Jeff Bezos, in the past, lauding Amazon's dominance and Bezos' business acumen.

Berkshire Hathaway also has significant stakes in companies like the food conglomerate Kraft-Heinz. Berkshire is a partner with Amazon and Wall Street bank JPMorgan Chase & Co in a health venture. He explains, "Mr. Buffett has commented pretty negatively on the airline space over the years, and actually speaks a lot about his poor experience with his U.S. Airways investment".

Buffet further added, "Yeah, I've been a fan, and I've been an idiot for not buying" [Amazon shares.] "But I want you to know it's no personality changes taking place".

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"I don't think the country will go into socialism in 2020, or in 2040, or 2060", Buffett told investors in Omaha, Nebraska during Berkshire's annual meeting on Saturday.

Apple was the largest single holding in Berkshire's US$173 billion ($260.3b) equity portfolio at the end of previous year, with a stake valued at more than US$40b. Since then, it seems that it may have racked up even bigger AAPL holdings.

We spoke to folks at Brooks Shoes, who showed off its footwear designed for shareholders, which happen to be the same ones they gave Warren Buffett.

The $21.66-billion overall profit, or $13,209 per Class A share, compared with a year-earlier net loss of $1.14 billion, or $692 per share, and a fourth-quarter net loss of $25.39 billion. Knowing this, a headline that Berkshire Hathaway was buying shares in Amazon would understandably generate interest in the markets.

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