Warren Buffett’s $ 570 million bet on Snowflake suggests he fully relies on his duties, says investor Jake Taylor


  • Berkshire Hathaway’s $ 570 million bet on Snowflake shows that CEO Warren Buffett has full confidence in his two portfolio managers, Todd Combs and Ted Wesclar, a fund manager says.
  • “Buffett has given his lieutenants the entire agency,” Jake Taylor, CEO of Faken Street Investments and co-host of the “Value: After Hours” podcast, told Business Insider.
  • “A high-profile tech IPO is a fantastic confirmation that his actions match his words,” he said.
  • Taylor’s comments echo those of Paul Lutzis, who said that Snowflake Investments trusts Buffett to “completely Todd and Ted” in an interview this week.
  • For more stories visit the Business Insider homepage.

Berkshire Hathaway’s plan to invest approximately $ 570 million in Snowflake’s IPO shows that CEO Warren Buffett is confident after his duties, CEO of Fernum Street Investments, and “Value: Our Hours” that this week Koisto Jake Taylor Told Business Rider.

“Buffett has given the entire agency to his lieutenant,” Taylor said, referring to Berkshire’s portfolio managers Todd Coombs and Ted Weschler. “A high-profile tech IPO is a great confirmation that his actions match his words.”

“Any lingering suspicion that these people get to invest, but they want them to be extinguished,” he said.

Read more: A prominent fund manager explains the reasoning behind the investment of $ 570 million in Snowflake’s IPO from Berkshire Hathaway – and this is a good sign for shareholders

Taylor’s comments are heard in an interview with this week’s Business Insider, echoing Paul Lountzis, founder and president of Lountzis Asset Management.

Berkshire’s bet on Snowflake – despite Buffett’s historic clash of public lists, loss-making tech companies, and elevated valuations – shows that he “has full confidence in Todd and Ted,” Lountzis said.

Buffett has emphasized in the past that Coombs and Weschler, who at the last count each manage about $ 14 billion each, are free to make their own investment decisions.

In an interview with Yahoo Finance in 2017, he said, “They don’t need to check with me before buying or selling.” This is entirely a decision. “

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Snowflake is seeking a valuation of $ 24 billion, more than 78 times last year’s revenue. Taylor Data said Berkshire’s investment in cloud-data platforms is not a betrayal of Buffett’s signature value-investing approach.

“My personal view is ‘value’ can come in a lot of tastes,” he said. “Just because something is not statistically cheap does not mean it cannot be mistaken.”

Read more: Stiffick says buy these 16 tech stocks to avoid the epidemic and will now pave the way for explosive growth in the coming months.

Zachary Lountzis, on Paul’s son and his vice president, made a similar argument. “Growth is a component of value,” he said, as a business cannot be evaluated if the market reduces its future income growth.

Buffett gave a similar view at a Berkshire shareholder meeting last year.

“All investment is value investment,” he said. “You’re just putting some money to get more later.”

“All the same calculations are done in this, whether you are buying some bank at 70% of the book value, or you are buying Amazon with some very high income.”

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