Amazon Stock Jumps After 'Idiot' Warren Buffett Reveals Berkshire Stake

By CCN: Billionaire Warren Buffett gave Amazon stock a jolt today after revealing that he owns AMZN shares and was "an idiot" for not investing in the e-commerce giant sooner.

On May 3, Amazon closed at $1,962 a share, up 3.24%, on heavy volume of 6.2 million shares. Average daily trading volume is 4.17 million shares.

amazon stock price may 2019
Amazon’s stock price was buoyed after billionaire Warren Buffett announced he has been buying AMZN shares. | Source: Yahoo Finance

Buffett: 'I've Been an Idiot for Not Buying Sooner'

This morning, Amazon stock climbed 2.5% in pre-market trading after Buffett admitted that he had underestimated billionaire Jeff Bezos and his relentless will to dominate the market.

“I’ve been a fan, and I’ve been an idiot for not buying [Amazon stock sooner]. But I want you to know it’s no personality changes taking place.”

Buffett says his multi-national holding company, Berkshire Hathaway, has been quietly buying up Amazon shares. Those purchases will show up in an SEC filing later this month.

“One of the fellows in the office that manage money bought some Amazon, so it will show up in the 13F."

Warren Buffett: Amazon Exceeded My Expectations

This is not the first time that Warren Buffett has expressed remorse for overlooking Amazon's potential and not investing in it earlier. The billionaire mogul says the lapse was "stupidity" on his part.

In 2018, Buffett gushed that Amazon had exceeded his wildest expectations for corporate growth.

“It’s far surpassed anything I would have dreamt could have been done. Because if I really felt it could have been done, I should have bought it. I had no idea that it had the potential. I blew it!”

Charlie Munger: Amazon 'Is an Utter Phenomenon'

amazon stock price amzn
Berkshire Hathaway finally invested in Amazon stock. | Source: Yahoo Finance

In February 2019, Buffett's longtime friend and colleague Charlie Munger — the billionaire vice chairman of Berkshire Hathaway — called Amazon "an utter phenomenon of nature."

"There has hardly ever been anything like it in the history of our country...very talented, driven people."

“I would not have predicted the success that happened. And now that it has happened, I wouldn’t want to predict that it was going to stop, either. I think it may run a long way.”

Jeff Bezos Will Do Whatever It Takes to Win

If Amazon stock is soaring and its corporate dominance continues to rocket, it's because its fiercely ambitious CEO, Jeff Bezos, will do whatever it takes to annihilate his competition and win.

As CCN reported, Amazon's Whole Foods subsidiary launched a Scorched-Earth price war in April 2019 to crush rival Walmart, which has a very successful grocery-shopping business.

To this end, Amazon slashed prices on 500 grocery items at Whole Foods to eat into Walmart's market share. This was the third round of price cuts the specialty grocer instituted since it was acquired by Amazon in 2017.

Amazon Launches Massive Price War Against Walmart

CNBC commentator Jim Cramer, who owns Amazon stock, says Bezos will stop at nothing to decimate the competition.

“They hate, hate, hate Walmart! Walmart is the biggest grocery chain in the country. Amazon will stop at nothing to take away the [market] share that Walmart has gained.”

Cramer excitedly noted that the heated competition between Walmart and Amazon has been good for consumers because they benefit from the price wars between these two corporate juggernauts.

“These guys are doing everything they can to take market share away from each other. That’s great for the consumer.”

Warren Buffett disses Elon Musk

At the 2019 annual Berkshire Hathaway shareholders meeting last weekend, Warren Buffett dissed Tesla CEO Elon Musk.

And Musk clapped back on Twitter.

Warren Buffett Slams Bitcoin Again

Did we mention that Warren Buffett and Charlie Munger trashed bitcoin again?

https://twitter.com/CCNMarkets/status/1125121851787759616

Last modified (UTC): May 8, 2019 2:55 AM

About the author

Samantha Chang

Samantha Chang is a New York City-based financial editor who writes about crypto and business at . She is a law school grad and an alum of the University of Pennsylvania. You can reach her on Twitter at or email her at [email protected]