Why Warren Buffett Doesn't Own Nike

Warren Buffett often explains why he has chosen to invest in particular businesses, but rarely do we hear why he has decided not to invest in certain companies. In this video, Buffett explains why investing in Nike was not of interest to him.

[fabiobonetta]

"You don't have to hire out your thinking if you keep it simple". Mr Munger smells of wisdom

[noeldown]

When you get so much right, you can afford to make mistakes that would bankrupt anyone else. This is a great example of that.

[oakshade]

Ultimately it was a big mistake for them to buy Dexter Shoe, in contrast to what is implied in the video.

[Jerry.anthony.c]

1:45 - "We rather multiply by 3 than by π" 😂😂👏🏽 Smart.
2:49 - "You don't have to hire out your thinking if you keep it simple"
4:08 - Avoid being wrong.
4:30 - Sales. "Don't ask the barber if you need a haircut"

[moqas]

It’s up more than 3000% since he dised Nike, while the shoe business that he bought or said liked and understood is nowhere to be found.

[cactusjack]

Crazy considering that both Nike and Reebok would’ve easily been better deals than some unknown cheap brand like Dexter.

[biajidejajchowdhury]

How do you differentiate between Nike/adidas/ reabok?

[cervelo]

In the last 20 years Nike has returned approximately +1, 847% calculated using Yahoo charting.
Warren and Charlie like to keep things simple. Which lead to them avoiding to invest in almost all technology company investments.
"Don't ask your barber if you need a haircut."
Is Nike really all that different an opportunity from Coke or Gilette. Nike has returned almost 20X in the last 20 years.

[JenPurple]

Nike vs Coke
- Coke’s key competitive advantage is its distribution system, you can get your news/info/entertainment from online, but you cannot be satisfied with virtual drinks. Coke built out strong distribution system early on, retails, convenience stores, restaurants, domestic and international markets.

- Nike established the brand early on through strong marketing techs, like events, sports, celebrities endorsement, but there are many great shoe brands out there doesn’t cost 2x of its price or cater different needs. Normal folks only have 2 feet average 4-7 pair of shoes, the average lifetime spending per person should be less than the lifetime spending on drinks, plus many strong competitors, it has to constantly promote to get its advantages.

[thecompanydna]

"Don't ask the barber wheter you need a Haircut", brilliant.

[davecheng]

Can you add when these talks were given to future clips on this channel? Thanks in advance.

[mr.shenanigans]

Evern notice how many people have $250 Nikees but don't have a emergency fund or a car?

[jonathanbsherman]

Does this mean Warren doesn’t have any retro Js

[Longtack]

This is old but it endures. Warren has many uses of the word "utility."

[jensbronton]

you have to relate to a product to have a feel to where it has potential. Maybe warren prefers flip flops when casual.

[PeterSedesse]

Nike is built on overcharging for a cheap product based on hype created by an insane marketing budget. Buffet didnt say it was a bad stock, just one that he doesnt understand.

[nathanwycoff]

What is the third thing Charlie says at 2:25? "An architect, a contractor and [what?]".

[cervelo]

I love to follow the two wise fellows, you can learn so much.

[Racoon_UK]

That stock is just stock vehicle to put the money in, speculate and sell high, zero significant value behind, cost of production that shoe is below 5$.. like many similar organisations.just speculative assets .

[edwardseymour]

There’s a reason why they are one of the wealthiest people on earth since they don’t invest in things that they don’t understand or fully understand. If you can’t teach about the company then don’t invest