A cardboard cut out in the likeness of Warren Buffett, chairman and chief executive officer of Berkshire Hathaway Inc., stands at the exit of the Pampered Chef Ltd. boothon the exhibit floor during the Berkshire Hathaway annual meeting in Omaha, Nebraska, U.S. (Photographer: Daniel Acker/Bloomberg)

Warren Buffett, We Hardly Recognize You

(Bloomberg Opinion) -- What makes a good Berkshire Hathaway Inc. investment? With the exception of Warren Buffett and his deputies, nobody knows anymore.

It wasn’t all that long ago that there existed the quintessential Berkshire investment. You know the kind. Whether in the form of a public stake or a full-out acquisition, Berkshire’s shopping history is full of moments that left onlookers thinking, “Yup, that’s so Buffett.” It’s undeniable that his past stock picks and takeover targets like Coca-Cola Co., the BNSF railroad, Dairy Queen, Deere & Co. and the Pilot Flying J truck-stop chain had Buffett written all over them. He’s long sought “simple” businesses that he could understand, with durable, if not beloved, brands. If it tasted good (and wasn’t good for you) or conjured up images of a patriotic middle America hard at work, then it just might have suited Berkshire’s tastes. 

Lately, though, many of Berkshire’s investments haven’t seemed to fit into that Buffett mold. 

Warren Buffett, We Hardly Recognize You

Technology companies never used to be on Buffett’s radar because, as he put it in his 1999 letter to shareholders, he had “no insights” into which ones possessed a true competitive advantage. But less than two decades later, tech giant Apple Inc. is the company’s biggest holding, a position now worth about $50 billion. On Wednesday, it disclosed more curious moves: Berkshire took a new stake in software maker Oracle Corp., dumped Walmart Inc., and bought more shares of Delta Air Lines Inc. — another industry he had at one time sworn off.

It could be that with so much of Buffett’s typical investing universe having been disrupted by technology and changing customer needs, the old stalwarts just aren’t as attractive as they once were. The tech industry that Berkshire avoided for so long now comprises the world’s most valuable companies, and they’re shaking up most other sectors. There’s also the fact that Buffett has entrusted Todd Combs and Ted Weschler with more investing decisions. They’re obviously putting their stamp on things, and Buffett is by all indications fine with that.

Warren Buffett, We Hardly Recognize You

But then, does the same old Buffett-y criteria still apply to Berkshire’s future megadeals? One would think what makes a good Berkshire stock investment and what makes a good Berkshire acquisition should be similar. Whatever the case may be, investors can take comfort knowing that whatever it is Buffett and his team are up to nowadays, it’s probably still smart.

This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.

Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.

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