Economy

My firm has bought 1st Amazon shares, says Buffett

My firm has bought 1st Amazon shares, says Buffett

Amazon's closing price on Thursday, ahead of this disclosure, was $1,900.82, and the shares were up nearly 2% at $1,938 shortly after the opening bell on Friday. Berkshire Hathaway is known for its value investments.

In 2017, Buffett told CNBC that "stupidity" was to blame for his not seeing Amazon's potential.

One of the fellows in the office that manage money bought some Amazon, so it will show up in the 13F later this month.

He holds a stake in Apple and had a sizeable investment in IBM at one point, but has generally refrained from investing in numerous biggest technology companies that have become powerhouses in the 21st Century, including Google, Facebook and - until now - Amazon. While too much cash is a high-class issue, it has weighed on Buffett's efforts to outpace the broader markets, with Berkshire shares' total return trailing the S&P 500 over the past decade.

Buffett credited some of his conglomerate's purchases of airline stocks and Apple Inc to the deputies and noted their involvement in helping the firm beyond their stock-picking duties. "I hope [Buffett] lives forever, but that's probably not a good bet".

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Buffett is well-known for not being the biggest fan of tech stocks. In last year's fourth quarter, Berkshire took a $3-billion writedown on Kraft. To solidify its dominance of the online retail market, Amazon is spending hundreds of millions of dollars to cut shipping times to a single day for some members. The annual event in Omaha, Nebraska features hours of the billionaire answering investor questions on everything from company strategy and succession to politics and life lessons.

The company this week signed a deal to pump US$10b into Occidental Petroleum to fund the oil and gas company's US$55b takeover of rival Anadarko.

Buffett's assistants did not immediately respond to a message seeking comment.

Warren Buffett has said that he underestimated Amazon.com Inc's Jeff Bezos.