2018: Why didn't Berkshire ever invest in Microsoft?

AUDIENCE MEMBER: Hi, I’m Theresa Lukasinski (PH). I’m from Omaha, Nebraska. And I have a question about Microsoft.

You have gotten into the tech world with buying Apple. You have Mr. [Bill] Gates there. I’m just wondering why you’ve never bought Microsoft.

WARREN BUFFETT: Well — (laughter) — in the earlier years, it’s very clear it’s — the answer’s stupidity. But the — (Laughter)

Since Bill has — particularly since Bill has joined the board, but even earlier than that because of our friendship, it would be — it just would be a mistake for Berkshire to buy Microsoft.

Because if something happened a week later, a month later, in terms of them having better earnings than expected, or making an acquisition — anything — both Bill and I would — incorrectly, but — would be a target of suggestions and accusations, perhaps even, that somehow he had told me something or vice versa.

I stay away from — I try to stay away from a few things just totally because the inference would be drawn that we might have talked — that I might have talked to somebody about something.

So I’ve told the fellows, Ted [Weschler] and Todd [Combs] for example, that there are just a few things that are off the list because there would be a lot of people who wouldn’t believe us if something good immediately happened after we bought it.

And of course, we — to buy a lot of stock, it can take six months to buy it or something of the sort. We just don’t need it.

But both that and my stupidity have cost us a lot of money. (Laughs)

It’s a very — it’s a good question, and I think the answer makes sense.

Charlie?

CHARLIE MUNGER: Well, it’s part of theology that a late conversion is better than never — (laughter) — and you’ve greatly improved yourself. (Laughter)