"I don't think Buffet would invest in technology is
because it's too hard to calculate accurate future earnings
forecasts."
he doesn't have to understand technology in order to invest in tech
stocks. He just to stick with what he knows and keep doing it and
be the most successful investor. How many tech darlings become
loosers: SHIVA, FORE, CIEN, etc. They were once leaders in their
technologies. Just one bad quarter, their price could have cut
in half. How often we see Buffet's stocks get hit that bad. Though
Gillet (G), Proctor (G), KO have dropped significantly, but eventually,
they will be recovered and make new high. However, I dont think
it would be the same for SHIVA, CIEN, etc.
Yes, CISCO and MSFT have superior returns, but how many of tech
stocks like CISCO and MSFT? That's why I willing to buy an
overprice CISCO at 47 last week. It's one of the only tech stocks
that I willing to bet for long-term. I dont know what happen to
MSFT five year from now. |
