Apple Inc. (AAPL), Microsoft Corporation (MSFT): The Problem With Simply Investing in Great Companies

That’s where there’s two skill sets, Brendan, that are completely different. One is running and understanding the real operations of a company and then the other is understanding market sentiment.

The reason why Warren Buffett is worth whatever it is, around $50 billion, is he’s one of the few guys that I know of in the world who has profound understanding of both. That’s why he can do two things. He can take companies private and make lots of money on them and invest with an unbelievable track record.

There aren’t many people who can do that. There are either people who can invest and have a fantastic track record or people who can really run companies fantastically, and the intersection is just a tiny, tiny, tiny little number.

Brendan: Throw in Warren Buffett’s free float from the insurance companies.

Martin: Right. Yes.

Brendan: Roger Martin, very interesting. Thanks again. Good to see you.

Martin: My pleasure to be here.

The article The Problem With Simply Investing in Great Companies originally appeared on Fool.com.

Brendan Byrnes owns shares of Berkshire Hathaway and Apple. The Motley Fool recommends Apple Inc. (NASDAQ:AAPL) and Berkshire Hathaway. It owns shares of Apple Inc. (NASDAQ:AAPL), Berkshire Hathaway, and Microsoft.

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