Berkshire Hathaway Chairman Warren Buffett spoke Thursday at The Gatehouse’s Hands Up for Success luncheon.
“I’d love to see them succeed, but that’s a company that can afford a mistake or two,” Buffett said when asked about Apple’s recent push into the entertainment business. “You don’t want to buy stock in the company that has to do everything right.”
He continued: “Apple should do some things that don’t work.”
Apple is Berkshire Hathaway’s largest investment, although it reduced its stake in the company late last year.
Buffett is skeptical about Apple’s push into entertainment because he believes that the number of hours that viewers spend on content is limited by the number of hours of the day.
On Monday, Apple announced new streaming services including a platform for users to subscribe to “channels” like HBO or Showtime, as well as its own service called Apple TV+ featuring Apple-produced content.
“You’ve got some very big players who are going to fight over those eyeballs,” Buffett said.
“You have very smart people with lots of resources trying to figure out how to grab another half hour of your time,” Buffett continued. “I would not want to play in that game myself.”
Last year, Apple became the first public U.S. company to reach $1 trillion in market value.
On Monday, Apple also announced an Apple-branded credit card in conjunction with Goldman Sachs.
This is a developing story. Check back here for updates.
