Warren Buffett gave a talk today at The Gatehouse’s Hands Up for Success luncheon and Apple’s new Services came up. The billionaire is mostly positive on Apple, but his comments about the company’s latest push into new Services like original TV content show he has doubts about how things might play out.
Reported by CNBC, Buffett started with a positive comment, but then noted that things might not go according to plan for Apple as it launches Apple TV+ and other new Services later this year.
“I’d love to see them succeed, but that’s a company that can afford a mistake or two,” Buffett said when asked about Apple’s recent push into the entertainment business. “You don’t want to buy stock in the company that has to do everything right.”
He continued: “Apple should do some things that don’t work.”
While Buffett may see Apple trying new things that may fail as a positive, Wall Street may not agree.
He clarified what he sees as some roadblocks by noting the stiff competition in the entertainment industry and the uncertainty that Apple is likely to face:
“You’ve got some very big players who are going to fight over those eyeballs,” Buffett said.
He went further and said that the entertainment industry is full of “very smart people” and wouldn’t want to compete in that market.
“You have very smart people with lots of resources trying to figure out how to grab another half hour of your time,” Buffett continued. “I would not want to play in that game myself.”
Notably, Apple stock is the biggest investment that Warren Buffett’s Berkshire Hathaway holds. As of last month, the company slightly reduced its AAPL position, but still holds 250 million shares.
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