At the annual shareholder's meeting for Berkshire Hathaway on Saturday, Warren Buffett and his business partner, Charlie Munger, both said they won't be investing in Facebook when the tech company finally releases its IPO.
"We never buy into an offering," Buffett told CNN Money. "The idea that something coming out...that's being offered with significant commissions, all kinds of publicity, the seller electing the time to sell, is going to be the best single investment that I can make in the world among thousands of choices is mathematically impossible," he explained. Munger, who at 88 is seven years older than Buffett, put it more plainly. "I don't invest in what I don't understand. And I don't want to understand Facebook," said Munger.
It isn't surprising that the two investors wouldn't be investing in the popular social network. Using what we learned from their annual letter to shareholders in February, the social network doesn't fit into any of the investment strategies the two usually follow.
Over 35,000 people attended the event in Omaha, Nebraska. Following Buffett's announcement that he's been diagnosed with stage I prostate cancer the came a little over two weeks before the event, concerns were raised over who would succeed Buffett should something happen. In Buffett's letter to shareholders in February, he wrote that the company has already decided on a successor but wouldn't disclose who it could be. Buffett dismissed the concerns about his health when speaking to CNN, and joked he only announced it because his secretary was getting too much attention. "I feel terrific," he told them. "My secretary was getting more attention than I was, so I threw the spotlight back on me. Seriously, it is a non-event."