Warren Buffett compares investing in Apple to farming

CEO of Berkshire Hathaway Warren Buffett talks to Yahoo Finance Editor-in-Chief Andy Serwer about Apple and his philosophy on investing.

Oh finances editor-in-chief andy serwer sat down with warren buffett to talk about the tech giant and buffett had a lot to say and he joins us now live on our in our new studio loving it so andy i know that warren probably won’t be obsessing over this news event today as much as we are right yeah it’s so funny i mean we follow every tick every talk every twitch

Of this company and we should to an extent but i think he gets some really good perspective where he says this is an incredible company incredibly profitable and just sit back relax and from his perspective invest in the company and let it roll and he had a really interesting metaphor you guys let’s take a listen let’s talk a little bit about apple everyone always

Wants to talk about animal right it’s kind of the its stock it company you have a forty five billion dollar stake more or less how closely do you follow the company you know people are concerned they haven’t really introduced any new products well if you have to closely follow a company you shouldn’t own it really no i made it i mean if you if you buy a business

Did you buy a farm you know you go up and look you know every couple weeks to see how far the corn is up and you know you worry too much about whether somebody says this is gonna be a year of low prices because it’s exports are being affected or anything like that you know you buy a farm and you hold it for i’ve got one farm that i bought in the 1980s and my son

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Runs it but i’ve been there once you know i mean it it doesn’t grow faster if i go and stare at it you know i can’t cheer for it you know more effort or something like that and i know there’s going to be some years when prices are gonna be good and some when the prices aren’t gonna be good i know those years when yields will be better than others what about the farm

And if it just and i don’t care about economic predictions on or anything of the sort i do care that over over the years it’s well tended to in terms of rotating crops and i hope yields get better which they generally have in fact that farm a hundred years ago what about one produced 30 bushels maybe thirty five bushels of corn per acre and now on a good year you

Know it’d be 200 i mean we’ve really made progress in this country that’s one reason commodity prices and go back a couple hundred years they’ve moved so little is because we’ve just gotten better and better at whether it’s cotton or whether it’s corn or soybeans or all kinds of things and you and i have benefited from that and so apple is kind of like a farm well

It’s a it’s a long-term investment and if you owned if you own the best auto dealership in town the best brand and had something good running it wouldn’t drop by every day and say you know how many people have come in today or you know i think interest rates are going up a little maybe that’ll slow down our sales or they know you buy it knowing there’s 365 days a

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Year and you’re gonna own it for twenty years so that’s seventy three hundred days and you know they’re gonna things are gonna be different from day to day and you’re dear you shouldn’t buy it at the day-to-day stuff that’s important it’s kind of funny i don’t know if tim cook exactly thinks of himself his chief farmer our dealership owner i mean he was going a

Bit of a tan i mean point well-taken but it’s a bit of a stretch to me i love you you follow up with like so let me just get this drivin fine because i feel like warren started the metaphor and didn’t exactly know if i was gonna get out of there but just kept you know digging up in defense of farmers there are people who check on their farm every single day i need

To make sure that the crops are growing properly so i think buffett has a macro enough view that he doesn’t need to do that and and his before him he says form a melody you know i mean i think it’s a good point though overall it’s like we you know it’s sort of self-defeating because we want you to watch and listen what we have to say every day and and i think it

Is important and it’s certainly interesting on the other hand you know if you take a bigger longer-term view i mean this company has these products they have all these profits and there is a big sea change going on i think today’s events important because obviously relying on the phone is kind of in the rearview mirror to a degree they don’t have new products yeah

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All no service isn’t important and you know tim cook is really counting on this media play that he’s getting into today yeah we’ll see how that does today a big day for apple all right thanks andy thank you

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Warren Buffett compares investing in Apple to farming By Yahoo Finance