Tech Investor Ross Gerber Said the Boom is Nothing Like the Dot-Com bubble-and Warren Buffett was WONDG TO SLASH HIS Apple Stake.
The Cofounder and Ceo of Gerber Kawasaki Wealth and Investment Management Told Business Insider and “Tradition Through” The Internet Mania Around the Turn of the Millennium. The he Craze “Just isn’t Comparable,” he Said.
The s & p 500’s 20%-Plus returns in 2023 and 2024 May SEEM unsustainable, but the benchmark Index Delivered Returns for Five Years 1999, Gerber Said. He Started HIS Career with “Perfect Timing” in 1994, he added.
When Magnificent Seven Companies Trade at Lofty Earnings Multiples, They’re Consider Overvaluded “Because People have Never Seen Numbers That Big,” Gerber Said. But the tech investor Said their valutes aren’t out of sync with their businesses, calling their profitability “just insane.”
Alphabet Generated More than $ 100 Billion in Net Income Last Year, while Nvidia’s Profits Rose by Over 50% on Year Last Quarter.
Gerber, whose firm invested in tesla and nvidia around a decade Ago and Now Manages North of $ 3 Billion in Client Assets, added that he had enormous potential to increes productivity and earnings. He contrasted it with smartphones, which he Called “counter useful” and “time wasters.”
Gerber Says Berkshire Hathaway Has a ‘Portfolio of the past’
Warren Buffett’s Berkshire Hathaway Has Taken Little Interest in the AI Frezy, September Seling 70% of It It Its Apple Stake in the 18 Months Up to June 30.
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Gerber Told Business Insider he thi naght that buffett may have paraed the stition ITE HAD Become too “Heavy” – It was Worth $ 174 Billion or Around half of Berkshire’s Entfolio at the End of 2023.
But Gerber Said and Still Thought the Sale was “dumb” Becouse “It was a huge realized gain is taxable, and there’s nothing that it could in that better than Apple in the long term,” he said.
Gerber Said Apple Wold “Continue to Mint Profits for A Very Long Time and Be a Part of Our Kids’ Lives Forever,” Adding that he didn’t see any “wisdom” in selling.
Gerber Kawasaki Counted Apple Among Its Top Holdings at the End of June with a $ 78 Million Position, for Its Latest Portfolio Filing.
Gerber Said Many of Berkshire’s Stocks and Subsidiaries, Such as the BNSF Railway, “Haven Done that Well” in Recent Years.
Berkshire Had the “Perfect Portfolio of the past, but it is definitely not the perfect portfolio of the Future,” He Said, Adding that Incoming Ceo Greg and His Team “Have a Lot of Work to Do” to Reposion it.
Warren Buffett’s Berkshire Hathaway has an Antiquated Portfolio, Ross Gerber Said. Thomson Reuters
Gerber Also Criticized Buffett for Betting on Kruft Heinz, Which on Tuesday Said It Wold Split Two Companies.
Gerber Said That He Had Openly Questioned The Investment During a Shift in Consumer Tastes Toward Healthier Options, and Why Buffett Had partner with A Private Equity Firm, 3G Capital, KNOWN FOR MAKING SUBJECTIVE LAYOFFS.
“I don’t see where Value’s CREATED ON A BUNCH OF OLD BRANDS THAT NOBODY WANTS,” GERBER SAID. “And just by firing People, it’s just just not going to create any Economic Value. And that we ended up proving to be true.”
Berkshire didn’t Respond to a Request for Comment from Business Insider.
Gerber on Meeting Buffett: ‘Realized… He’s No Joker’
Gerber Recalled Meeting Buffett During the 2008 Crisis at an event for then-presidential candidate Barack Obama.
Gerber, Who Was Working for Aig-Awned Sunamerica, Told Business Insider That He Approached The Berkshire Chief to Ask if he’d Consider Aig to Help The Insurance Giant’s Troubles.
“And he looked at me like, ‘You’re out of your mind,’ and got in the Car and Left,” Gerber Recalled. “And i realized when i lookeed this guy eye to eye like, this guy, he’s no joker at all.”
The US Government Acquired Around 80% of AIG in September of that Year, One of the A Series of Bailouts of Companies that demed “Too Big to Fail.”
People May See Buffett As “Stodgy, Old, Fun, Nice Guy” Because He “Plays that Role Well Really“Gerber Said, but in reality, he’s” One of the Most Cutthroat Businessmen of All Time. “
Gerber Said Buffett was “retiring on top” by stepping down as ceo at the end of this year, Having “set up his successors in a perfect way” with the power and cash realie their.
There’s “Something Great” About Those Who Recognize It ‘Time to “Leave Gracefully,” Gerber Said. “I Think Buffett’s Done a Great Job of that.”