Warren Buffett has found a technology firm he likes: Fiserv.
The so-called Sage of Omaha, who famously has avoided tech firms because he allegedly does not understand them, disclosed this week to the Securities and Exchange Commission that his holding company has purchased 4.4 million shares in the financial institution services firm, Fiserv, based in Brookfield, Wis.
Fiserv provides software and online services for check processing, payment processing, risk and compliance management, customer relationship management and analytics to banks, credit unions and investment services firms. Last year, Fiserv recorded $4.1 billion in sales.
In 1998, Buffett notably said that he was unlikely to invest in computer-related companies.
"The answer is no, and it's probably unfortunate,’’ he said. “ I don't know what that world will look like in 10 years, and I don't want to play in a game where the other guy has an advantage over me."
It’s more than 10 years later and he’s apparently changed his mind. In a filing on Monday, Berkshire disclosed its stake. In the filing, the holding was valued at $200.9 million. As of midday Wednesday, Fiserv stock was up to $51.61 and the stake was worth $227.1 million.
Monday was also the day Fiserv said it hired former JPMorgan Chase executive Sean Gallagher as president of its Investment Services division.
Gallagher is to oversee product management, strategy, sales and product development for Fiserv's Investment Services business. The business helps investment firms "grow revenue and increase operational efficiencies."
Fiserv processes more than 3.4 million managed accounts on its technology platform, known as APL.