Why Warren Buffett says he will never buy Microsoft stock
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Why Warren Buffett says he will never buy Microsoft stock

Why Warren Buffett says he will never buy Microsoft stockWarren Buffett stunned the investing world this week when he broke his longstanding custom of staying away from expertise shares, disclosing a 5.4 percent stake in IBM and a smaller investment in Intel.

Why not Microsoft? It’s an attention-grabbing query on condition that Buffett most likely is aware of extra in regards to the Redmond firm than about another tech stock, given his longtime friendship with Invoice Gates. To not point out that epic 1997 e mail to Buffett from then-Microsoft govt Jeff Raikes (which later surfaced in an antitrust case) making the theoretical case for the worth of an funding within the software program firm.

In actual fact, Buffett said on CNBC this week that his friendship with Gates is the rationale he didn’t buy Microsoft stock.

Microsoft is a particular case as a result of Microsoft is off bounds to us due to my friendship with Invoice and if we spent seven months shopping for Microsoft stock and through that interval they introduced a repurchase or improve of the dividend or an acquisition, folks would say you’ve been getting inside info from Invoice. So I’ve advised (funding gurus) Todd and Ted and I apply it myself that we don’t ever buy a share of Microsoft. I believe Microsoft is engaging however … we will never buy Microsoft. … Individuals would simply assume I knew one thing and I don’t, however they might assume it and they’d assume Invoice talked to me and he wouldn’t have. However there’s no sense placing your self in that place.

Whether or not it’s a reliable purpose or a handy excuse, it sounds fairly definitive.

Earlier: Gates: Microsoft’s opportunity ‘stronger than it’s ever been’ … Live notes from Microsoft’s annual shareholder meeting.

Picture by Asa Mathat/Fortune via Flickr

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