Warren says he understands how much Microsoft is getting off of royalties for Windows but is unsure about his confidence in a 20 year bet compared to a company like Coke which sells Cola.
Warren turned out to be very wrong in investing in Coke over MSFT. However, his reasoning wasn't awful. The entire e-mail pleading the case to him is about how great of a business selling the OS is. However, if Microsoft had stuck to that the stock would not be doing so well now. Perhaps he and the person pleading MSFT's case were wrong to view Microsoft's business as operating system related instead of tech and computing more generally. I'd say both were about the same levels of wrong but one had a better outcome.
Warren says he understands how much Microsoft is getting off of royalties for Windows but is unsure about his confidence in a 20 year bet compared to a company like Coke which sells Cola.
Warren turned out to be very wrong in investing in Coke over MSFT. However, his reasoning wasn't awful. The entire e-mail pleading the case to him is about how great of a business selling the OS is. However, if Microsoft had stuck to that the stock would not be doing so well now. Perhaps he and the person pleading MSFT's case were wrong to view Microsoft's business as operating system related instead of tech and computing more generally. I'd say both were about the same levels of wrong but one had a better outcome.