Reply to post: Utter Cobblers

Moneybags Buffett on ditching Oracle stake: I don't think I understand where the cloud is going


Utter Cobblers

That is all cobblers. Buffet, like many around in the 50's, understands the cloud very well - in many cases better than us young'uns. Mainframes, billing for shared resources... conceptually, none of this is all new.

He's also got form on talking the smelly bovine patter in that folksy Omaha style. He's always tried to make you think exactly what he wants you to think. And in this case, he wants you to think that the lovable befuddled old codger has got a bit confused, made a mistake - but it's OK, he's now rectified it. I call BS. Buffet's way too smart for that.

Buffet didn't make himself one of the wealthiest men on the planet by spending the likes of two billion dollars on an investments he didn't understand.

In much the same way as there was one victor in the 50's (IBM) and maybe an also-ran (DEC perhaps), he also knows that the spoils will go to at most two victors, and that Amazon and Microsoft are so far ahead of the pack as to make the rest of the players look very niche indeed.

Holding an investment for a few months is VERY rare for Buffet. He's the absolute epitome of the long-term buy-and-hold investor. It suggests to me that he's gotten wind of a SERIOUS problem at Oracle. At least, that's how big institutional investors will see this. And they will sell too, just in case, to avoid being the last schmuck in the house. Expect Oracle stock to drop like a lead balloon. When you're personally worth fifty billion dollars and own the world's most successful investment fund, you can move markets with your words and your actions. So Buffet will continue to look like a genius anyway; selling before the stock tanked And the legend goes on...

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