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Warren Buffett 1997 Email Exchange on Microsoft | Saber Capital Management

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I recently came across an interesting email exchange from a time when email was still in its infancy. The exchange was between Warren Buffett and a 39-year old Jeff Raikes, a high-level Microsoft employee. The email references “Bill G”, and after some small talk, it gets into a pretty interesting outline of Microsoft’s business model, and why it was such a great business. A couple years ago, Warren Buffett described how the five largest companies in the S&P 500 (Apple, Microsoft, Google, Amazon, and Facebook) are great because they can grow without much invested capital. Buffett said he could operate these “Big 5” companies “with no equity capital”. I’m not sure I completely agree with that, because these tech firms are spending a large amount of money on capex and also R&D, which could be viewed as a capital investment, but I think his point is that their core businesses don’t require the large working capital and property investment that a manufacturing firm or a steel producer would

Warren Buffett 1997 Email Exchange on Microsoft by John Huber | Dec 19, 2019 | Investment Ideas & Company Research , Warren Buffett I recently came across an interesting email exchange from a time when email was still in its infancy. The exchange was between Warren Buffett and a 39-year old Jeff Raikes, a high-level Microsoft employee. The email references “Bill G”, and after some small talk, it gets into a pretty interesting outline of Microsoft’s business model, and why it was such a great business. A couple years ago, Warren Buffett described how the five largest companies in the S&P 500 (A

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