The Tech Stock Warren Buffett Wishes He'd Bought
Key Points
Buffett's close relationship with Bill Gates caused him not to invest in Microsoft.
Microsoft has grown to become the world's third-most-valuable public company.
- 10 stocks we like better than Microsoft ›
Although Warren Buffett is revered as one of the greatest investing minds of his time, that doesn't mean he hasn't had some missteps or regrets along his six-decade-plus journey.
It's one thing to make an investment and realize you made a bad choice; it's another thing when you've watched a stock flourish while you watch from the sidelines, wishing you'd bought it. When it comes to the latter with Buffett, Microsoft (NASDAQ: MSFT) fits that description.
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Buffett has openly been a fan of Microsoft's business for many years, but has publicly said that his close friendship with its co-founder Bill Gates kept him and Berkshire Hathaway from investing in the company. At Berkshire's 2018 annual meeting, Buffett said: "It just would be a mistake for Berkshire to buy Microsoft."
Given Buffett and Gates' relationship, Berkshire investing in Microsoft could seem like favoritism and a conflict of interest. It could also run the risk of people (especially regulators) questioning whether Buffett has access to inside information not publicly available.
It's unfortunate that Buffett and Berkshire missed the train, as Microsoft has been one of the best-performing investments the market has seen. It also checks many of the boxes Buffett looks for in a company. It's now valued at over $3.5 trillion (up by over 780% in the past decade), and is currently the fourth-most-profitable public company in the world.
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Stefon Walters has positions in Microsoft. The Motley Fool has positions in and recommends Berkshire Hathaway and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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