Warren Buffett, famed “Oracle of Omaha” and one of the most-respected investors of all time, has amassed an incredible fortune through his work heading conglomerate Berkshire Hathaway (BRK-A). Buffett’s investment decisions are monitored so closely by the outside financial world that virtually every move he makes is pored over by analysts and widely imitated. So, when Buffett has in recent weeks turned his attention toward technology, and particularly toward new devices designed as “wearable tech,” it is a safe bet that other investors will follow his lead. What may have drawn Buffett to this area, and what is the future of wearable tech like for an outside investor?
Buffett Moves Away from Customary Caution
Buffett is famous not only for his savvy business decisions, but also for his reluctance to undertake opportunities he doesn’t feel are good moves. As such, the billionaire investor is known for being particularly cautious when it comes to technology investments. For example, Buffett only entered into an investment position in computing behemoth IBM (IBM) in 2011, a full two decades since the company was founded. His investment in Apple (AAPL) began only a year ago, in spite of the continued success of the company.
So Buffett’s decision to continue to support the Richline Group, a subsidiary company of Berkshire Hathaway, in its efforts to create a customizable array of smart jewelry called Ela (“Elegant Lifestyle Accessories”) could be seen as a change of strategy. However, Buffett doesn’t see it this way. Rather than view Richline’s new focus on smart jewelry pieces which are designed to alert wearers to new calls and texts as a move into the area of technology, Buffett sees it more as a jewelry venture.