Warren Buffett is still “wary” of investing in companies like Apple (AAPL) because, according to him, their business prospects are harder to predict than companies such as Coca-Cola Co. (KO).
[via Bloomberg] “Even though Apple may have the most wonderful future in the world, I’m not capable of bringing any drink to that particular party and evaluating that future,” Buffett said during a visit to South Korea. “I simply look at businesses where I think I have some understanding of what they might look like in five or 10 years.”
“We held very few in the past and we’re likely to hold very few in the future,” Buffett said referring to electronics makers. He noted that a company like Coca-Cola, on the other hand, is “very easy for me to come to a conclusion as to what it will look like economically in five or 10 years, and it’s not easy for me to come to a conclusion about Apple.”
The comments by the world’s third-richest man come as electronics makers worldwide scramble to assess damages from Japan’s 9.0-magnitude earthquake and subsequent tsunami that killed more than 8,000 people. The country is home to several of the world’s major high tech manufacturers, including Sony, Panasonic, Toshiba and Canon.