Warren Buffett Loves These 4 Tech Stocks

NEW YORK (TheStreet) -- The technology sector has been a source of much investor interest in the past year with names such as Apple  (AAPL) - Get Report, Google  (GOOG) - Get Report, Microsoft  (MSFT) - Get Report, and Facebook  (FB) - Get Report as the heavyweights at the top of the list.

But the industry itself has boomed in the last year, with 50.08% year-over-year growth as of March 16, 2015, according to Fidelity. Moreover, approximately 90% of all publicly-traded tech companies are profitable today, according to Morgan Stanley.

One investor who has a stake in the tech sector is Warren Buffett, considered the most respected and successful investor. Often called "The Oracle of Omaha" for his impressive investing prowess, he is among the world's wealthiest people.

Buffett studied under the legendary Benjamin Graham at Columbia University who had a major impact on Buffett's life and investment strategies.

Watch the video below for some interesting facts about self-made billionaire, Warren Buffett:

Buffett is chairman of Omaha, Nebraska-based Berkshire Hathaway Inc (BRK.A) - Get Report, which he built from a textile company into a major corporation with a market cap of more than $350 billion. Under Buffett's leadership, Berkshire shares averaged a 19.7% compounded annual gain in per share book value from 1965-2013.

He follows a value investing strategy that is an adaptation of Graham's approach: Discipline, patience, and value consistently outperforms the market. His moves are followed by investors worldwide. Buffett seeks to acquire great companies trading at a discount to their intrinsic value, and to hold onto them for a long time. He will only invest in businesses that he understands, and always insists on a margin of safety.

Regarding the types of businesses Berkshire likes to purchase, Buffett has said, "We want businesses to be ones that we can understand, with favorable long-term prospects, operated by honest and competent people, and available at a very attractive price."

The following are the four tech stocks Warren Buffett loves, as evidenced by their presence in the top 25 holdings in his portfolio as of December 31, 2014.

4. Verizon Communications (VZ) - Get Report

Shares Held by Warren Buffett's Berkshire Hathaway:  15,001,000 shares
Value of Holdings:  $702 million
Portfolio Weighting as of 12/31/2014:  0.64%

Verizon Communications is the largest U.S. wireless communications service provider as of September 2014.

Free Report: Jim Cramer's Best Stocks for 2015

TheStreet Ratings team rates VERIZON COMMUNICATIONS INC as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: 

"We rate VERIZON COMMUNICATIONS INC (VZ) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and weak operating cash flow."

You can view the full analysis from the report here: VZ Ratings Report

3. VeriSign (VRSN) - Get Report

Shares Held by Warren Buffett's Berkshire Hathaway:  12,985,000 shares
Value of Holdings:  $740 million
Portfolio Weighting as of 12/31/2014:  0.68%

VeriSign is an Internet and communications company that operates network infrastructure, including two of the Internet's thirteen root nameservers.

Free Report: Jim Cramer's Best Stocks for 2015

TheStreet Ratings team rates VERISIGN INC as a Buy with a ratings score of B-. TheStreet Ratings Team has this to say about their recommendation:

"We rate VERISIGN INC (VRSN) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

You can view the full analysis from the report here: VRSN Ratings Report

2. Charter Communications (CHTR) - Get Report

Shares Held by Warren Buffett's Berkshire Hathaway:  6,198,000 shares
Value of Holdings:  $1.033 billion
Portfolio Weighting as of 12/31/2014:  0.94%

Charter Communications is the fourth-largest cable television operator in the U.S. The company provided cable television, high-speed Internet, and telephone services to more than 27.6 million customers in 29 states in 2013.

Free Report: Jim Cramer's Best Stocks for 2015

TheStreet Ratings team rates CHARTER COMMUNICATIONS INC as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation: 

"We rate CHARTER COMMUNICATIONS INC (CHTR) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."

You can view the full analysis from the report here: CHTR Ratings Report

1. IBM (IBM) - Get Report

Shares Held by Warren Buffett's Berkshire Hathaway:  76,972,000 shares
Value of Holdings:  $12.349 billion
Portfolio Weighting as of 12/31/2014:  11.3%

IBM provides information technology products and services worldwide.

The company's Global Technology Services segment provides IT infrastructure and business process services, including outsourcing, process, integrated technology, cloud, and technology support.

Free Report: Jim Cramer's Best Stocks for 2015

TheStreet Ratings team rates INTL BUSINESS MACHINES CORP as a Hold with a ratings score of C+. TheStreet Ratings Team has this to say about their recommendation: 

"We rate INTL BUSINESS MACHINES CORP (IBM) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its notable return on equity and expanding profit margins. However, as a counter to these strengths, we also find weaknesses including a generally disappointing performance in the stock itself, deteriorating net income and generally higher debt management risk."

You can view the full analysis from the report here: IBM Ratings Report