The tech is one of the heaviest weighted industries represented in the activist investor’s portfolio. This is also the case for Benioff’s Salesforce Venture, the investment arm of Salesforce.com.
In contrast, Buffett’s portfolio overall has always stayed underweight in tech and leans towards financials, industrials, and consumer goods. The “Oracle of Omaha” has always viewed technology as important to the economy’s growth. However, he believes that tech companies are overvalued and too risky of an investment.
Oftentimes technology companies that come to market end up going bust due to the heavily overcrowded market conditions and lack of profitability. Profitability is very important to Buffett when contemplating his investment decisions.
Many were surprised when Berkshire Hathaway took a huge stake in Apple Inc (NASDAQ:.AAPL). The conglomerate’s big bet in Snowflake’s IPO is all the more surprising for those who have been following Buffett because he never invested in IPOs. he often warns against new offerings due to high volatility and overvaluations driven by hype.
