Warren Buffett: I Feel Pretty Good About IBM's Future, Especially In Hybrid Cloud

Of all the technology companies that one can invest in, the ‘Oracle of Omaha’ and Chairman of Berkshire Hathaway Inc. BRK BRK chose International Business Machines Corp. IBM to make a sizeable investment in. Buffett was on CNBC recently to explain why.

Making Estimates

“There’s no question that I have far less technical knowledge about how IBM works than I do about how Wells Fargo or Coca-Cola works, Buffett said. “But we do have 70 plus companies and when we talk to them we learn something of their plans and we learn about competitive products and we make some estimates.”

IBM Will Continue As The Biggest Supplier

He continued, “We will take Wells Fargo, my guess is that Wells Fargo, IBM is their biggest supplier and now my guess is that IBM will be their biggest supplier 5 or 10 years from now. I think that there’s a significant difference. Sometimes the location or the information actually has to be geographic, geographically specific, but there are certainly differences in the degree of security that people feel they need in terms of storing information on the cloud.”

The Hybrid Cloud Future

“And as I talk to CEOs and I talk to our own managers, I feel pretty good about IBM’s future probably more so in what they call the hybrid cloud than the cloud which you generally read about. IBM is a very, it’s a trusted organization, it’s an innovative organization and they are competing against a lot of the other people in the innovative field.”

Not A Winners Take All Game

“It’s not a winner take all game. I mean search you might say it comes very close to a winner takes all game. Cloud computing is not a winner take all game,” Buffett concluded.