Warren Buffett: "Larry Ellison’s done a fantastic job with Oracle. I’ve followed it from the standpoint of reading about it, but I felt I didn’t understand the business. Then, after I started buying it, I felt I still didn’t understand the business. I actually changed my mind in terms of understanding it—not in terms of evaluating it. I mean, Oracle is a great business, but I don’t think, particularly after my experience with IBM, I understand exactly where the cloud is going.

I’ve been amazed at what Amazon has done there, and now Microsoft is doing as well. So, I just don’t know where that game is going.

That leads us to a question from a viewer named Mark Hall, who asked: 'With IBM bouncing back, how do you feel about getting out?'

I’m glad I got out; we got a lot higher prices than this. But I'm not knocking it. The whole market's come back; the market's at a high. That doesn't mean I think it’s going down subsequently; I just mean that it’s higher. It’s been on that path for, well, really ever.

I mean, when we met here 10 years ago, the S&P 500 was at 666 within a day or two of when we got together. People thought America was washed up and they were afraid of America. And what’s happened? It quadrupled in 10 years. How many quadruples do you get in your life?"

Key Summary Points

• Circle of Competence: Warren Buffett admits that despite Oracle's success, the evolving cloud landscape (led by Amazon and Microsoft) makes the business difficult for them to personally forecast.

• Exit Strategy: There is no regret regarding the IBM exit, noting Berkshire Hathaway sold at a higher valuation than the current "bounce back" price.

• Market Optimism: A reflection on the 10-year recovery of the S&P 500, moving from a low of 666 to quadrupling in value, highlighting the long-term resilience of the American economy.