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Buying Amazon Might Not Make Up for Buffett’s ‘Terrible Mistake’


May. 3 2019, Published 11:24 a.m. ET


In an interview with CNBC, Berkshire Hathaway’s (BRK-B) chairman, Warren Buffett, said that the company has brought some Amazon (AMZN) shares. Buffett said, “One of the fellows in the office that manage money … bought some Amazon so it will show up in the 13F.” Ted Weschler and Todd Combs are two of the other investment managers at Berkshire Hathaway.

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Buffett praised Jeff Bezos and admitted to missing out on Amazon. In last year’s annual meeting, Buffett admitted to missing out on Amazon and Alphabet (GOOG). In a Yahoo Finance interview, Buffett said that missing out on Amazon was a “terrible mistake.”

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Berkshire Hathaway

Will Berkshire Hathaway buying Amazon shares make up for Buffett’s mistake? There’s a chance that buying the shares might not make up for Buffett’s mistake. First, the shares were brought by a different investment manager. The quantum of the purchase might not be as significant as some of Berkshire Hathaway’s other top holdings. Considering Berkshire Hathaway’s massive size, small investments don’t move the needle much. Second, Amazon’s fast-paced growth has shown signs of slowing down. Buying the stock might not yield the kind of returns that investors enjoyed in the past.

Buffett disclosed Berkshire Hathaway’s stake in Amazon a few days before its annual meeting scheduled on May 4. Read Berkshire Hathaway: What to Expect from the Annual Meeting to learn more. Berkshire Hathaway has also committed $10 billion to Occidental Petroleum in its hostile takeover battle for Anadarko Petroleum.


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