Warren Buffet and Jeff Raikes email conversation

The only aspect of Microsoft that Raikes thought was different from Warren's other investments was the "Width of the Moat." There is an assurance that customers that like Coke will not completely shift in user preference away from drinking sodas.

Buffet explained that he did not fully understand technology and that if he had to bet on Microsoft would use a baseball strike strategy. Not swing at all until a perfect pitch was thrown.

This memo starts with Jeff Raikes asking Warren Buffet why does he not invest in Microsoft.Raikes believed that the simplicity of the Microsoft business was similar to Coca-Cola or See's Candy which will quite be simple for Warren to understand."A PC is just a razor that needs blades," he mentions. "The number of PCs sold and the number of software... See more

Warren Buffet and long time Microsoft exec Jeff Raikes email back and forth on how to value Microsoft as an investment.

Buffet replied a few days later as he did/does not read his emails daily. He replied to a few of the Football comments that Jeff started his message with and continued to talk about business.

In technology, we may more frequently see paradigm shifts where the old is replaced by the new and the explosion of the internet, devices and technology as a whole.This means tech executives and leaders have to pivot faster than ever before. In tech valuations and stock prices can change more rapidly than in other industries.