Examine Berkshire Hathaway’s recent investments in Apple and Amazon. Do these investments signal a change in the company’s investment strategy? Why or why not?

Answer:

Berkshire Hathaway recently invested in Apple and Amazon which are already well established companies and Berkshire Hathaway estimated further growth in these companies resulting in the company making investments in them.

These investments signalled a change in the company's investment strategy because Berkshire Hathaway generally invests in companies which are at an early stage in their corporate journey and have a lot of potential for growth. The company buys shares considering that nature of business the company is into, industry, its competitors, market share, potential growth and a lot of other factors. And predominantly Berkshire Hathaway did not invest in technology companies much. But there is a clear change in the company's investment strategy because Apple and Amazon are technology giants and have established a lot of products and services which are technologically advanced and cater to the customer requirements in the changing technology scenario. Moreover, both these companies are already well established and have a name in the technology industry which goes against the traditional investment approach followed by Berkshire Hathaway of investing in still developing companies. Hence we can see a clear shift in investment strategy followed by the company.