Transcript: On Missing Google

I should have had some insight into it because GEICO was a heavy user very early on. We saw value in something at that time—I have no idea what we're paying per click now—but we were paying 10 or 11 dollars a click for something that had no cost of goods sold, and we were going to keep doing it. I mean, we could see that. So, I should have had more insight into it.

Now, whether Bing was going to come along or other people were going to take away the market, that’s another question. Whether you had a sort of first-user advantage that would prevail... and there is a lot of technology to it. So, somebody could have come along with a better technological product, and I would not have had any insights into that.

I certainly had insights into the benefit to the user. I think LASIK surgeons or something like that, it may have sold for 60 or 70 bucks or something of the sort, and mesothelioma... I don’t know what it brings now, but just imagine having something where every time you just hit a click, you know, a cash register rings somewhere out in California.

It was and is an extraordinary business, and it has some aspects of a natural monopoly. I mean, it’s very easy for me when I go to the computer. When I'm looking for information for the annual report, I used to have to mail away to federal agencies or go down to the public library, and now I can get it in 10 seconds. So it’s a hugely valuable device which the other guy pays for—the user on the computer doesn’t.

The answer is we missed it. And I knew the fellows; they came to see me before they did.

Interviewer: Sergey and Larry came to see you?

Buffett: Yeah. And actually, Eric did too.