Why Warren Buffett Loves Amazon Stock
If you're familiar with the classic components of a Warren Buffett stock, you probably already know that Amazon (NASDAQ: AMZN) doesn't fit the mold.
Why is that? Buffett, the CEO of Berkshire Hathaway, usually favors stable dividend payers with a proven track record of delivering profits in good times and bad. He also likes stocks that trade below their intrinsic value. Historically, Buffett has also avoided tech stocks, saying he doesn't know how to value them, though that policy has eased in recent years.
Amazon has always been an expensive stock, and it's difficult to value according to conventional modeling because the company has diverse business lines and is constantly experimenting with new products and services. However, Amazon has grown to be one of the biggest companies in the world thanks to its strength in e-commerce and cloud computing, and Buffett has taken notice. He's lauded Jeff Bezos, the founder and chairman of Amazon, saying in 2016, "We haven't seen many businessmen like him."
Source Fool.com
