Warren Buffet is undoubtedly one of the most important investors in all of history. His fund is called Berkshire Hathaway Inc, which currently has assets worth $686 billion. Owns 5.7% of Apple12.9% of Bank of America, 9.2% of Coca-Cola and 20% of American Express, among many other multinationals.
Until 2016, Buffet was not interested in the technology sector. He thought he was unreliable, that he didn’t have the stability he needed, and that things could change too quickly. However, one day he decided to acquire $1,000 million in Cupertino stock, and he hasn’t stopped since. Actually, Currently, he owns approximately $119 billion worth of stock in the company..
$10,000 in exchange for your iPhone
The other day, the investor had a relaxed interview with CNBC in which he touched on many topics. His investments, his life, why he decided to enter the technological world… and above all, why Apple is the company that occupies the highest percentage of its portfolio (and 39%).
To this question, Buffet commented that not a big fan of the tech industry
Warren Buffet understands that it’s not just about the numbers. That feelings are also very important in the market
To prove his point, he talked about user loyalty to the brand. He says that “if you’re an Apple user and someone offers you $10,000, but the only condition is that they take your iPhone and you can never buy another one, you are not going to accept it. If they tell you they give you $10,000 and you don’t buy another Ford car, you take the $10,000 and buy a Chevy instead.”
I personally agree with him. I won’t stop using the iPhone even if they gave me $10,000 now. I think it gives me a lot more, qualitatively and quantitatively, to have a phone that I enjoy and don’t have to fight to make it work, than $10,000 right now.
I asked the same question of two of my colleagues. On the one hand Isra Fernandez, our coordinator, and on the other hand Miguel López, editor-in-chief. Here I leave your answers:
Israel:
Warren Buffett’s dilemma is very interesting because it includes our emotional attachment to Apple. From a moral point of view, to do without the iPhone for life is to give up 50% of the possibilities of a smartphone. In my case, it would be very difficult for me to choose, even if I would try to cheat: accept this $10,000 without hesitation and place my work system between the best possible Android mobile and my iPad, as has been the case for years before making the final leap to the iPhone.
However, there is one certainty in all this: it is much easier to switch from Android to iOS than from iOS to Android. Those of us who work with both systems out of “obligation” always agree on this. In a way, you feel like an orphan and maybe it’s because of the organic nature of their systems. Tim Cook may or may not be the best at what he does, but it’s true that he’s managed to perpetuate Apple’s maxim: elevate the brand and secure its value beyond technological function.
Michael:
I am between two possible answers. The first is to continue using the iPhone since I prefer it, even more than having $10,000 in my bank account. What I’m about to say may sound bad, but $10,000 isn’t that much. This is equivalent to buying a high-end iPhone 5 with good storage. If I were to stay here, I’d up the ante on Warren Buffet and guarantee I’d stop using the iPhone for a minimum of $100,000. And tax free of course! And I would aim for one of those little androids for convenience.
The second answer is more of a gamble: say yes to Buffet and accept that $10,000 thinking the iPhone won’t last forever. Consider the iPod: if Warren Buffet had offered me this at the height of this player and I had said yes, I would have lived without the iPod but I could have bought the iPhone. Now I could do without the iPhone and calmly wait for another device to replace it, be it Apple Glasses or something else. It would be a break of a few years.
Anyway, what would you do, would you accept this proposal from Warren Buffet? If it was (a lot) more money, I wouldn’t think about it too much, but it’s not enough to make a life change. But hey, who knows, it’s already been speculated that augmented reality glasses could eventually replace the iPhone. If so, I think we’ll take all $10,000, but until then my answer is no. Which is yours?
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