The Value Trade Is in Big Tech
It probably has something to do with Warren Buffett saying that he avoids technology stocks because he doesn't understand them that causes many value investors to dismiss them as well.
What the CEO of Berkshire Hathaway (BRK.A, BRK.B) means is he can't model future cash flows with a degree of comfort. Indeed, when I look at my investment holdings, I hardly ever find myself owning tech names. Yet if you ask a value investor to describe what they seek in a value investment, the answer will usually have to do with buying an asset at a significant discount to all the cash that can be taken out of the business....565 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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