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Warren Buffett Says There's No Bubble In FANG Stocks, But He's Still Not Buying

Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett is one of the most successful and well-respected investors of all time, but that doesn't mean he hasn't made his fair share of investing mistakes.In fact, throughout most of his investing career, Buffett has shied away from tech stocks, completely missing the massive rallies in the so-called FANG stocks: Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX) and Alphabet, Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL).Buffett was asked his thoughts on the FANG stocks in a recent interview with Yahoo Finance ahead of Berkshire's annual shareholder meeting on Saturday. The FANG group has experienced meteoric gains over the past decade, but Buffett said he doesn't believe they're experiencing a bubble similar to the dot-com bubble."No, just the opposite. I mean, you're seeing in this kind of a market, those companies don't need capital. Well, Netflix needs capital. But basically, the big companies in market value don't need capital," Buffett said.Buffett said the top 10 largest companies 30 years ago, such as General Motors Company (NYSE: GM) and AT&T Inc. (NYSE: T), all needed money.Missing The FANG Train When asked why he never invested in Google or Amazon, Buffett said he simply dropped the ball on Google."Well, that's a pretty damn good question. But I don't have a good answer. I definitely should've owned Google."Despite his regret over not pulling the trigger in the past, Buffett said he's not buying the FANG stocks these days either."No, but I don't buy much. Those are the kind of businesses I think about a lot. Charlie [Munger, Berkshire vice chairman] thinks about them a lot. You can't help but do it. I mean, those are incredible business stories."Benzinga's Take Buffett is an excellent example of the fact that investors can make plenty of mistakes and miss plenty of opportunities and still end up wildly successful. Rather than chasing hit stocks, Buffett has always focused on identifying undervalued stocks and patiently riding out short-term market noise.Do you agree with this take? Email [email protected] with your thoughts.Related Links:Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios What Is The Buffett Indicator?Photo credit: Fortune Live Media, FlickrSee more from Benzinga * Wall Street Weighs In On Facebook's Big Quarter: Innovation Accelerates Amid Pandemic * 7 Best-Performing Stocks Of 2020: Buy, Sell Or Hold? * Large Facebook Option Trader Betting On Earnings Sell-Off(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. Read More...

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett is one of the most successful and well-respected investors of all time, but that doesn’t mean he hasn’t made his fair share of investing mistakes.” data-reactid=”19″>Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) CEO Warren Buffett is one of the most successful and well-respected investors of all time, but that doesn’t mean he hasn’t made his fair share of investing mistakes.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="In fact, throughout most of his investing career, Buffett has shied away from tech stocks, completely missing the massive rallies&nbsp;in the so-called FANG stocks:&nbsp;Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX) and Alphabet, Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL).” data-reactid=”20″>In fact, throughout most of his investing career, Buffett has shied away from tech stocks, completely missing the massive rallies in the so-called FANG stocks: Facebook, Inc. (NASDAQ: FB), Amazon.com, Inc. (NASDAQ: AMZN), Netflix, Inc. (NASDAQ: NFLX) and Alphabet, Inc. (NASDAQ: GOOG) (NASDAQ: GOOGL).

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Buffett was asked his thoughts on the FANG stocks in a recent interview with Yahoo Finance ahead of Berkshire’s annual shareholder meeting on Saturday. The FANG group has experienced meteoric gains over the past decade, but Buffett said he doesn’t believe they’re experiencing a bubble similar to the dot-com bubble.” data-reactid=”21″>Buffett was asked his thoughts on the FANG stocks in a recent interview with Yahoo Finance ahead of Berkshire’s annual shareholder meeting on Saturday. The FANG group has experienced meteoric gains over the past decade, but Buffett said he doesn’t believe they’re experiencing a bubble similar to the dot-com bubble.

“No, just the opposite. I mean, you’re seeing in this kind of a market, those companies don’t need capital. Well, Netflix needs capital. But basically, the big companies in market value don’t need capital,” Buffett said.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Buffett said the top 10 largest companies 30 years ago, such as General Motors Company (NYSE: GM) and AT&amp;T Inc. (NYSE: T), all needed money.” data-reactid=”23″>Buffett said the top 10 largest companies 30 years ago, such as General Motors Company (NYSE: GM) and AT&T Inc. (NYSE: T), all needed money.

Missing The FANG Train

When asked why he never invested in Google or Amazon, Buffett said he simply dropped the ball on Google.

“Well, that’s a pretty damn good question. But I don’t have a good answer. I definitely should’ve owned Google.”

Despite his regret over not pulling the trigger in the past, Buffett said he’s not buying the FANG stocks these days either.

“No, but I don’t buy much. Those are the kind of businesses I think about a lot. Charlie [Munger, Berkshire vice chairman] thinks about them a lot. You can’t help but do it. I mean, those are incredible business stories.”

Benzinga’s Take

Buffett is an excellent example of the fact that investors can make plenty of mistakes and miss plenty of opportunities and still end up wildly successful. Rather than chasing hit stocks, Buffett has always focused on identifying undervalued stocks and patiently riding out short-term market noise.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Do you agree with this take? Email [email protected] with your thoughts.” data-reactid=”31″>Do you agree with this take? Email [email protected] with your thoughts.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Related Links:” data-reactid=”32″>Related Links:

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios ” data-reactid=”33″>Q4 13F Roundup: How Buffett, Einhorn, Ackman And Others Adjusted Their Portfolios

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="What Is The Buffett Indicator?” data-reactid=”34″>What Is The Buffett Indicator?

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Photo credit: Fortune Live Media, Flickr” data-reactid=”35″>Photo credit: Fortune Live Media, Flickr

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="See more from Benzinga” data-reactid=”36″>See more from Benzinga

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.” data-reactid=”41″>© 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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