The Real Reason Warren Buffett Isn't Buying the Chicago Cubs

Berkshire's Chairman and CEO adamantly denied that he'll purchase a sports team.

Jun 7, 2014 at 11:45AM


Photo: Jason Howell.

In April, citing an anonymous source, Mike Ozanian of Forbes suggested that Warren Buffett, chairman and CEO of Berkshire Hathaway (NYSE:BRK-A) (NYSE:BRK-B), might buy part of the Chicago Cubs. It turns out, Buffett isn't interested in a sports team.

He fervently denied the rumor on Bloomberg. Later, during the annual Berkshire meeting in Omaha, a shareholder from Chicago asked if there was any chance of Buffett investing in sports, either via a team or equipment manufacturing.

Below are my notes on the shareholder's question, along with responses from Warren and Berkshire Vice Chairman Charlie Munger. 

Shareholder: Do you ever have any plans to buy a professional sports team or equipment manufacturing company?

Warren: I own a quarter of a minor-league team, but it's not responsible for my position on the Forbes 400. No, I'm not interested in buying a sports team. If you hear us doing it, it might be time to talk to our successors...

Generally speaking, when you look at the people making baseball gloves, football helmets, it's not been particularly profitable. Certain aspects like owning helmets should be run by someone who hasn't a dime to his name because he's not going to be a target. The idea of owning business that provided guards in airports, owned by this super-rich corporation, that is a perfect target. The guard company at airports should be owned by someone whose net worth is not yet higher than two figures.

You won't find us in the sports arena. Charlie, are you looking at the Clippers?

Charlie: Whenever I hear Warren talk about sports teams, I like him less.

I'm glad that Buffett has denied these rumors. Owning a sports team can be profitable in certain circumstances, but mostly it's just a very expensive hobby for the insanely rich. There's an old joke about owning a sports team. Question: what's the easiest way to become a millionaire?  Punchline: start off as a billionaire, then buy a sports team.

Buffett once owed a small interest in a minor league team, but it would be totally out of his frugal character to spend billions to purchase a major sports team like the Cubs. 

Warren Buffett isn't buying the Cubs. He's buying this stock.
Imagine a company that rents a very specific and valuable piece of machinery for $41,000... per hour (that's almost as much as the average American makes in a year!). And Warren Buffett is so confident in this company's can't-live-without-it business model, he just loaded up on 8.8 million shares. An exclusive, brand-new Motley Fool report details this company that already has over 50% market share. Just click HERE to discover more about this industry-leading stock... and join Buffett in his quest for a veritable landslide of profits!

Brendan Mathews owns shares of Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool owns shares of Berkshire Hathaway. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information