Could Warren Buffett be on the lookout for more tech stocks? That’s a question that Validea CEO John Reese examines in a recent article for Canada’s Globe and Mail.
“Not long ago, that question would have seemed foolish. Warren Buffett avoided investing in technology companies, saying that the nature of their businesses did not allow him to determine which tech companies truly had ‘durable competitive advantages’ over their peers,” Reese writes. “But with Mr. Buffett’s company, Berkshire Hathaway, having scooped up more than $10-billion (U.S.) worth of International Business Machines’ stock over the past few months, it’s now a question that begs to be asked.”
Reese uses his Buffett-inspired Guru Strategy — which is based on the approach Buffett used to build his empire — to see if any tech stocks currently appear to have “Buffett-esque” fundamentals. Among those that pass muster: Connecticut-based Amphenol Corp. Reese also takes a look at tech giant Research In Motion, seeing how the Canada-based firm matches up against his Buffett-inspired approach. To read the full article, click here.