Warren Buffett, the Chairman and CEO of Berkshire Hathaway, is not interested investing in Uber Technologies, which is set for an initial public offering (IPO) on Friday, May 10.
During an interview with CNBC’s Becky Quick on Monday, Buffett explained why he is not buying the Uber IPO or any other new stock offerings.
The legendary value investor looked at Uber’s business 18 months ago but decided to pass on it. “I don’t have any special feelings about it…I would say in 54 years, I don’t think Berkshire has ever bought a new issue,” according to him.
In addition, Buffett said, “The idea of saying the best place in the world I could put my money is something where all the selling incentives are there, commissions are higher, the animal spirits are rising, that that’s going to better than 1,000 other things I could buy where there is no similar enthusiasm … just doesn’t make any sense. I’m not saying that what we’re buying is going to work out better, but there have to always be better things than one single issue.”