The Third Pig

Change Is Good

http://www.brickfinancial.com/thethirdpig/archive/2011/11/change_is_good.html

Posted by Ben Taylor on November 14, 2011 04:00 PM

"The difficulty is not in the new ideas, but in escaping the old ones." - John Maynard Keynes

Warren Buffett is famous for not investing in technology. He is also famous for avoiding international shares. He also has been known to avoid railroads. But things change. Buffett announced this morning on CNBC, he has bought upwards of $10 billion worth of IBM stock. Although investing in a technology company marks new territory for Buffett, he did not come to the decision quickly. He reports he's been reading IBM annual reports for 50 years and finally decided to pull the trigger.

Buffett, has also invested in internationally and in railroads. Recent years have marked and expansion of Buffett's willingness to invest in areas he traditionally hasn't. This is likely less a divergence from his core investment principles than it is an expansion of his investment circle of competence. Perhaps this will also be an boost to Berkshire Hathway's stock. Time will tell.

The embedded video is of Buffett's appearance on CNBC today. (LINK)












Portfolio:

"Warren Buffett's Berkshire Was Buying as Stock Prices Fell" by Alex Crippen; CNBC

"Warren Buffett Still a Shrewd Investor: Tilson" by Michelle Fox; CNBC

You can buy one of the greatest collections of businesses [Berkshire Hathaway] run by one of the greatest investors [Warren Buffett]—if not the greatest investor—of all time at a 35 percent discount to intrinsic value. - Whitney Tilson
Disclosure: At the time of this writing, I and the clients of Brick Financial Management, LLC owned shares of Berkshire Hathaway (BRK-B). But positions can change at any time.

Posted by Ben Taylor on November 14, 2011 04:00 PM

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