
Warren Buffett used furniture business to figure out Apple's worth - sytelus
http://www.cnbc.com/2017/05/08/billionaire-investor-warren-buffett-says-its-very-easy-to-see-where-apple-is-with-consumers-at-any-time.html
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sytelus
So buffet has almost tripled-down on Apple. This is a huge departure from his
value investing philosophy. AAPL is typically considered "value stock" by many
when its below $100, ideally around $90. However more importantly Buffet's
assertion that people don't care about high prices in smartphone business
unlike in furniture business is provably wrong. Buffett has usually avoided
tech companies because they are too glorified and usually a speculation, not a
long term value investment.

What is going on here? Is it all about his equation that takes into account
cash pile, other assets with market cap? Does that really apply to tech
company where you can from boom to bust in literally few months?

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draw_down
The mention of the chain of furniture stores is almost a non-sequitur. I think
he's saying something about how he can observe consumer behavior regarding
price...?

