Warren Buffett is clearly optimistic about the long-term impact of 5G in America. And the CEO of one of his investments in space says it makes a lot of sense.
“He [Buffett] sees the value of this sector, “T-Mobile CEO Mike Sievert told Yahoo Finance Live.” And again, this is something that we’ve all seen [investor] presentations this week – AT&T, Verizon and T-Mobile presented business plans that are very attractive, valuable and generate cash flow and this sector is valuable. “
Buffett, the world’s fifth richest person, revealed new positions at Verizon, Chevron, Marsh & McLennan and EW Scripps in the fourth quarter of 2020, according to a recent 13-F lawsuit with the SEC. Verizon is one of the biggest new stakes in the Omaha Oracle. Buffett snapped up 147 million shares of Verizon, now valued at about $ 8.22 billion. (Verizon is the parent company of Yahoo Finance.)
The investment in Verizon is in addition to Buffett’s increase in his stake in Sievert’s T-Mobile. Buffett now owns 5.2 million T-Mobile shares valued at $ 656 million. He initiated his position at T-Mobile in the third quarter of 2020, disclosing 2.4 million shares, then valued at $ 276 million.
Both recent positions come as the two telecommunications giants – along with AT&T – continue to fight for high-speed 5G positioning among smartphone subscribers. The battle has accelerated this week, with the telecom trio presenting optimistic long-term predictions after a closely watched C band spectrum auction.
Former Cisco CEO John Chambers says Buffett is right with the likely bet on the future impact of 5G technology. “5G is part of the larger IoT and digitization movement, as everything moves to the edge [computing], “Chambers, who now leads his venture capital firm JC2 Ventures, explained on Yahoo Finance Live.
This optimism is supported by several projections about the impact of 5G.
“Fast and smart 5G technology-enabled Internet connectivity is expected to create approximately $ 3.6 trillion in economic output and 22.3 million jobs by 2035 in the global 5G value chain alone,” Forum researchers wrote. World Economic Forum. “This will translate into global economic value in all sectors of $ 13.2 trillion, with manufacturing representing more than a third of that production; information and communications, wholesale and retail, utilities and construction will account for another third Combined.”
Get more information on what to do and what not to do in Buffett’s investments here.
Brian Sozzi is a general editor and anchor on Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi is at LinkedIn.
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