Warren Buffett famously used to avoid technology stocks. Now he seems to have embraced them.
Berkshire Hathaway reported a 41.4 million share stake of computing giant Oracle as of the end of September, according to a regulatory filing on Wednesday. Buffett’s conglomerate also has been building a substantial stake in Apple for the last two years, ending the third quarter with approximately 252 million shares.
Oracle shares jumped 2.6 percent in aftermarket trading. The shares are up 3.3 percent this year as of Wednesday’s closing price. Berkshire’s regulatory filing appeared after the closing bell.
Oracle would be only one of two major tech stakes Berkshire holds. It once held IBM shares but sold out of that stake completely earlier this year. Berkshire’s pivot away from IBM toward companies like Apple and Oracle would seem to be a changing of the guard for tech stocks.
The next generation of cloud computing has been Oracle’s big push under Executive Chairman Larry Ellison, who like Buffett is a billionaire. Buffett is often nicknamed the “Oracle of Omaha,” for his stock-picking abilities.