‘Why I missed the boat on Google' Warren Buffett says he underestimated tech giant
LEGENDARY US investor Warren Buffett says he missed the boat on Google because he didn't understand the tech firm's business model.
Warren Buffett admits he should have invested in Google
And the 86-year-old scion told Berkshire Hathaway shareholders this weekend that he's all about the buy on Google as well as retailer Amazon.
Mr Buffett, who once said it is "almost unnatural how much I love newspapers," says he wishes he had understood how Google was making money.
And he admitted his consumer insurance company subsidiary Geico was actually splashing out $10 or $11 per advertising click while he was struggling to work out whether Google was a viable investment strategy.
If I was forced to buy [Google-parent Alphabet] or short it, I'd buy it; same way with Amazon
Mr Buffett, who appeared on CNBC's "Squawk Box" this morning, also had big praise for Amazon boss Jeff Bezos, who like Google, has adapted to become one of the true success stories of the digital age.
Known as the 'Oracle of Omaha', Mr Buffett announced last week that he'd decided to offload a third of his investment in International Business Machines (IBM).
He said: "I think if you look back at what they were projecting and how they thought the business would develop, I would say what they've run into is some pretty tough competitors.
"IBM is a big strong company, but they've got big strong competitors too.
"I don't value IBM the same way that I did six years ago when I started buying.”
He went on to add the company has "run into some pretty tough competitors”.
Talking of his view on digital firms Mr Buffett told CNBC: "If I was forced to buy [Google-parent Alphabet] or short it, I'd buy it; same way with Amazon".
Mr Buffett also said Amazon chief Jeff Bezos has outperformed his wildest expectations.
He revealed: "I was too dumb to realise. I did not think [Bezos] could succeed on the scale he has.” He added he "really underestimated the brilliance of the execution”.
Berkshire Hathaway currently owns more than 60 companies, including Geico, Duracell and Dairy Queen.
Mr Buffett, a committed philanthropist, is the son of a US congressman and first bought stock at age 11 and filed taxes at age 13.