(Reuters) – The Oracle of Omaha, Warren Buffett, admitted on Monday he knew less than he thought about Oracle Corp, the company which is under the supervision of fellow billionaire Larry Ellison.
FILE PHOTO: Oracle Corp Chief Executive Larry Ellison introduces the Oracle Database In-Memory during a launch event at its headquarters in Redwood Shores, California, June 10, 2014. REUTERS/Noah Berger
Investors were taken aback earlier this month when the company of Buffett, Berkshire Hathaway Inc., revealed that last year the fourth quarter had to leave a $2.13 billion stake in Oracle that was in the previous quarter.
It is rare for Berkshire, which owns a number of shares for decades, to relax a investment so quickly. It is also rare for Berkshire to large investments in the technology sector.
Speaking on CNBC television, Buffett recalled his failed investment in International Business Machines Corp in the determination of that Oracle the company, it was not for him, but Ellison had done a “fantastic job” done.
“After I started buying it, I felt that I still don’t understand the business,” Buffett said. “Especially after my experience with IBM, I don’t think I understand exactly where the cloud goes.”
The Oracle of Omaha is a nickname that Buffett’s fans often use for him. His conglomerate is based in Omaha, Nebraska.
Berkshire said it ended the year with $172.8 billion in inventory, including $40.3 billion in the iPhone maker, Apple Inc., which Buffett views as more of a consumer, the company.
He said that the total increase in 2019, because it’s tough to buy the entire businesses to add to Berkshire’s portfolio of more than 90 companies, including the Geico car insurance company and BNSF railway.
It is unclear why Berkshire’s annual report on Saturday omitted a previously included section “acquisition criteria, including that Berkshire preferred “simple businesses (if there are a lot of the technology that we do not understand).”
Buffett and long-time Vice-Chairman Charlie Munger ceded day-to-day overview of Berkshire’s operating units last year to the Vice-Presidents, Greg Abel and Ajit Jain.
Reporting by Jonathan Stempel in New York; Editing by Jeffrey Benkoe