I think what Warren recognized about Apple—perhaps with nudging by one of the Ts—was that the iPhone and iPad were not simply new products but were products designed to be easily upgraded and capable of holding hundreds of different apps, which would tag along with an upgrade. My wife and I have now upgraded our devices multiple times; we have never given thought to switching to a Droid. That has created a monstrous moat for Apple, and Warren recognized that. Warren didn’t ‘convert’ to tech; he recognized value—enough value to commit over $30 billion—and turn it into over a 150 billion gain. Not bad for an over 85-year old!.
Hi Arthur — This is definitely one of my favorite parts of the Berkshire/Buffett story. His ability to recognize the power and persistence of the Apple brand and ecosystem, even when part of an industry he mostly avoided, is just the perfect capstone to his career. Sort of a final proof that all of the stuff he talked about over the decades — like moats, brands, pricing power, share of mind, etc. — is still what counts even in the fast-moving tech industry.
Charlie often noted how much he admired Warren’s learning ability. The notion common today that at 95, shortly 96, Warren is useless, is nonsense. Of course, Warren has often joked that he is fully depreciated, but that is a reflection of his humbleness. Something we should emulate!
Kevin, I’m sure your work often rewards you with wise insights.
The 250th anniversary has caused me to focus more on the key sentence in the Declaration: “All men are created equal.” It is remarkable by how much of a ‘virtue’ this statement is: we have much to do to realize that we are all—not just men, white men, are created equal. Having this as our virtue—as a goal we seek, imperfectly, to achieve—is what has made the U.S. unusual—and remarkable. But we still have much to live up to—to motivate us as a people.
I think what Warren recognized about Apple—perhaps with nudging by one of the Ts—was that the iPhone and iPad were not simply new products but were products designed to be easily upgraded and capable of holding hundreds of different apps, which would tag along with an upgrade. My wife and I have now upgraded our devices multiple times; we have never given thought to switching to a Droid. That has created a monstrous moat for Apple, and Warren recognized that. Warren didn’t ‘convert’ to tech; he recognized value—enough value to commit over $30 billion—and turn it into over a 150 billion gain. Not bad for an over 85-year old!.
Hi Arthur — This is definitely one of my favorite parts of the Berkshire/Buffett story. His ability to recognize the power and persistence of the Apple brand and ecosystem, even when part of an industry he mostly avoided, is just the perfect capstone to his career. Sort of a final proof that all of the stuff he talked about over the decades — like moats, brands, pricing power, share of mind, etc. — is still what counts even in the fast-moving tech industry.
Charlie often noted how much he admired Warren’s learning ability. The notion common today that at 95, shortly 96, Warren is useless, is nonsense. Of course, Warren has often joked that he is fully depreciated, but that is a reflection of his humbleness. Something we should emulate!
Kevin, I’m sure your work often rewards you with wise insights.
Keep at! You reward us too!
Being a learning machine never stops paying off!
Kevin,
The 250th anniversary has caused me to focus more on the key sentence in the Declaration: “All men are created equal.” It is remarkable by how much of a ‘virtue’ this statement is: we have much to do to realize that we are all—not just men, white men, are created equal. Having this as our virtue—as a goal we seek, imperfectly, to achieve—is what has made the U.S. unusual—and remarkable. But we still have much to live up to—to motivate us as a people.