Warren Buffett’s Berkshire Hathaway Bought Over $73 Million in Shares of This Tech Company — Here’s Why
Written by
John Csiszar
Edited by
Amber Barkley
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Warren Buffett is known as one of the most successful investors of all time. His Berkshire Hathaway investment vehicle has handily trounced the returns of the S&P 500 over the long run, and that trend is continuing in 2025.
One of the things Buffett has been famous for in recent years is amassing a huge pile of cash, estimated by Fortune at over $334 billion as of March 2025. When Buffett can’t find anything to buy, many pundits see it as a warning sign for the overall market. But Buffett has been busy buying at least one stock: 90s era internet domain registry company VeriSign (VRSN).
After skyrocketing during the dot-com bubble and subsequently foundering, as so many did, VeriSign has been slowly climbing its way back to relevance over the ensuing decades, and Buffett has apparently taken note. As of March 2025, Berkshire Hathaway owns nearly 14% of the company. So, why is Buffett buying, and does that make it a good investment for you?
Why Might VeriSign Interest Buffett?
On the one hand, VeriSign is a technology stock, and Buffett has long been known for his aversion to investing in that industry. But on the other hand, VeriSign exhibits many of the characteristics that appeal to Buffett.
For starters, VeriSign has been an active repurchaser of its own shares. This is one of the hallmarks of a Buffett investment. When a company buys back its own shares, it by definition increases its earnings per share across the shares that remain. This is an easy way to give a company an earnings boost. VeriSign has bought back a whopping 60% of its shares over the past 18 years, helping its existing shareholders tremendously along the way.
Another huge attraction for Buffett is no doubt the company’s near-monopoly position in its primary business. VeriSign generates tremendous cash flow on a consistent basis, making it a predictable earner with a “moat” of protection that Buffett often cites as one of his prerequisites for owning a stock.
What Do Analysts Think?
Analysts are not yet bullish on VeriSign. According to Yahoo Finance, of the four analysts following the stock, two have a buy rating, one has a hold rating and one has a sell rating. Worth noting, however, is that Citi named the stock one of its top picks in Jan. 2025, according to Investor’s Business Daily.
Of course, this is a scenario that may also appeal to Buffett. The noted value investor has been quoted as saying, “Be fearful when others are greedy, and greedy when others are fearful.” A stock that doesn’t have a lot of analysts following to begin with, let alone few that recommend the stock, could set it up for a rally if and when Wall Street turns bullish on it.
How About the Charts?
Investor’s Business Daily noted that VeriSign broke out on the upside in Feb. 2025, perhaps due at least in part to the news that Buffett was buying the stock. After a roughly six-year consolidation pattern, a breakout to the upside could be significant and long-lasting, if you believe in the charts.
Could VeriSign Be a Good Investment for You?
Just because someone else is buying a stock — even if that “someone” is Warren Buffett — doesn’t necessarily mean you should, too.
Although VeriSign appears to have some tail winds right now, including Buffett’s backing and a chart breakout, you should do your own research and see if the stock meets your investment objectives and risk tolerance. Take into account the stock’s valuation, analyst ratings and earnings trends before investing your hard-earned money.
Consider working with a fiduciary financial advisor if you need help making these types of decisions.
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