Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 21
Tech is low risk / high reward but he is not able to see it.

Mr Buffett is able to see that most "tech" firms are not predictable businesses over long time frames--the range of outcomes is generally very wide.
Technologies change, especially cutting edge technologies.
He also understands that really good investment results come from skipping things that give unpleasant surprises: Rule #1 and all that.

So...does he understand investing in tech better, or worse, than other prominent investors?

Consider:
People who do skydiving understand the intricacies of things like PLFs and rear riser stalls and parachute folding far better than I do.
But they are also far more likely to die in a skydiving accident than I am.
So...which of us has a better handling of the risk?

One view:
If something risky is not worth doing, it's not worth doing well.

Jim
Print the post  

Announcements

What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.