Billionaire investor Warren Buffett called himself an “idiot” for not buying stock in Amazon, but said someone at his investment firm, Berkshire Hathaway, is making up for his lack of foresight.
Buffett told CNBC on Thursday that a money manager at Berkshire Hathaway has been buying shares in Amazon lately. On Friday, shares of Amazon jumped more than 3%.
“Yeah, I’ve been a fan, and I’ve been an idiot for not buying” Amazon shares, Buffett said on CNBC Thursday. “But I want you to know it’s no personality changes taking place.”
In 2017, Buffett told CNBC that “stupidity” was to blame for his not seeing Amazon’s potential.
And at last year’s Berkshire annual meeting, Buffett said that he has long admired Amazon CEO Jeff Bezos, but he blew the chance to invest in it early on when the stock was priced more reasonable. Buffett said then that he thought Amazon stock was likely too expensive for him to buy now at a value, but one of his investment managers at Berkshire decided differently this year.
While the famously technology-averse investor admits he made a mistake, he also made it clear that Berkshire’s Amazon buy was not directed by him.
Details about the transactions are expected to be revealed in a future regulatory filing.
Shares in the Seattle-based Amazon.com Inc. rose to $1,960.91 in afternoon trading Friday, its high for the year. The stock is up 30% so far in 2019.
Berkshire Hathaway Inc., based in Omaha, Nebraska, owns a range of businesses including insurance, railroads, jewelry stores as well as major investments in American Express, IBM and Wells Fargo & Co. Its annual shareholder meeting is Saturday.