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Market Extra: Buffett says Amazon stock purchase doesn’t deviate from value-investing principles

Billionaire investor Warren Buffett on Saturday dismissed the notion that Berkshire Hathaway’s purchases of highflying shares of Amazon.com Inc. marks a departure from value-investing principles.

Buffett on Friday disclosed that Berkshire Hathaway Inc. BRK.A, +1.10%BRK.B, +1.24% had purchased shares of the e-commerce giant. Buffett told CNBC that he had not pulled the trigger on the purchase, suggesting the decision came from Todd Combs or Ted Weschler, who run their portfolios independently of Buffett.

Read: Berkshire buying Amazon stock is a wake-up call for individual investors, says this portfolio manager

Asked during the question-and-answer session of Berkshire’s annual meeting on Saturday whether the purchases marked a divergence from Buffett’s maxim of being “fearful when others are greedy” and Berkshire’s traditional price-versus-value considerations, Buffett argued that value wasn’t tied solely to factors like book value or low price-to-earnings ratios, popular metrics for assessing equity valuations.

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