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Why Warren Buffett Always Avoids IPOs

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Rupert Hargreaves
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Throughout his lengthy career as an investor, Warren Buffett has always stayed away from IPOs. The one exception to this was Berkshire Hathaway's involvement in Snowflake's IPO last year.

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As Buffett hasn't commented on the deal directly yet, I think it's reasonable to assume that one of his investing lieutenants, Todd Combs or Ted Weschler, was responsible for throwing the conglomerate's weight behind the deal.

Apart from Snowflake, Berkshire hasn't been involved in any notable IPOs, and Buffett has explained multiple times in the past why he tries to avoid initial public offerings at all costs.

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Sign up now and get our in-depth FREE e-books on famous investors like Klarman, Dalio, Schloss, Munger Rupert is a committed value investor and regularly writes and invests following the principles set out by Benjamin Graham. He is the editor and co-owner of Hidden Value Stocks, a quarterly investment newsletter aimed at institutional investors. Rupert owns shares in Berkshire Hathaway. Rupert holds qualifications from the Chartered Institute For Securities & Investment and the CFA Society of the UK. Rupert covers everything value investing for Hedge Fund Alpha