As everyone knows, Warren Buffett is the world’s greatest investors, having created tens of billions of dollars in wealth through his investments over the past several decades. Hence, when he discloses about the investments made by his company Berkshire Hathaway, then it is big news.
Additionally, his opinions on companies and businesses count a lot as well. As a matter of fact, Buffett used to be famously skeptical of the business model of e-commerce giant Amazon and for years, it proved to be a wrong judgment.
That being said, he is someone who is quick to change his mind if the situation changes and recently he has become a fan of the company. The ace investor had bought a large chunk of Amazon shares after having been impressed with the company’s growth over the last decade. However, in a new development, it has emerged that Warren Buffett’s Berkshire Hathaway has decided to raise its stake in the world’s biggest e-commerce company.
On Wednesday, Berkshire Hathaway announced that during the course of the second quarter, the company increased its stake by as much as 11% in the Jeff Bezos owned company Amazon. In this regard, it is interesting to note that Berkshire Hathaway increased its stake when the company’s shares were trading at record highs. It illustrates the fact that despite the highs, Buffett considers the current price of the Amazon stock value for money and believes that there is going to be significant upside in the years to come.
Moreover, it is also necessary to point out that Buffett is well known for holding on to stocks he owns for decades and hence, it is a long term play which perhaps does not entail any sale in the near future.
According to the filing made by Berkshire Hathaway, the company currently owns 537,300 shares in Amazon and it has a total value of $1.02 billion. Prior to the purchase of this stake, Berkshire Hathaway held 483,300 shares in Amazon.
Now one thing that needs to be kept in mind is that in addition to Amazon’s sprawling e-commerce empire, the company has also grown in other areas. It has turned itself into a massive tech firm which now provides cloud computing services to a wide range of companies across the world, and it is a business that is all set to grow exponentially in the years to come.