Summary List Placement
Warren Buffett’s Berkshire Hathaway is poised to plow about $570 million into Snowflake when the cloud-data platform goes public at a potential $24 billion valuation — and the investment comes despite Buffett’s past warnings about IPOs, lofty valuations, and money-losing tech companies.
The surprise bet by the famed investor’s conglomerate shows it’s capable of moving with the times, Paul Lountzis, president and founder of Lountzis Asset Management, told Business Insider this week.
Buffett, who turned 90 this month, is showcasing flexibility and adaptability — two defining traits throughout his career, Lountzis said.
He’s also demonstrating that he completely trusts his two portfolio managers, Todd Combs and Ted Weschler, as one of them is likely behind the Snowflake wager, Lountzis continued.
Lountzis’ fund owned about $29 million of Berkshire stock at the end of June, representing more than 25% of the total value of its $106 million equity portfolio. Before setting up his own shop in 2000, Lountzis worked at Ruane, Cunniff & Goldfarb, an investment adviser with historical ties to Buffett.
Snowflake, which lets customers analyze data remotely using its cloud platform, may have appealed to Buffett and his team because of its “long runway, large addressable market, …read more
Source:: Businessinsider – Technology