Just because Berkshire Hathaway ( BRK.A) founder Warren Buffett is investing in a particular stock or sector, doesn't mean you should, too. In fact, experts say his recent forays into the telecommunications and energy sectors don't signal a vote of confidence for either group. Buffett, who has traditionally ignored industries that he claims not to understand or which are going through rapid changes, has made two investments recently in Williams Cos. ( WMB) and one investment in Level 3 Communications ( LVLT) that contradict his ethos. The latter was particularly surprising to some because the competitive advantages of Level 3 aren't immediately clear.
common stock. He's coming in with a special deal," said Kilpatrick. "If the company goes under, it's not like he's going to be left high and dry."