Charlie Munger, Chairman of the Daily Journal and Vice Chairman of Berkshire Hathaway, sat down with Yahoo Finance Editor-In-Chief Andy Serwer to discuss Berkshire's investments in Activision Blizzard and Apple.

Video Transcript

ANDY SERWER: So a recent SEC filing, Charlie, showed Berkshire Hathaway bought almost $1 billion worth of shares in Activision Blizzard before the buyout by Microsoft. Do you like that investment?

CHARLIE MUNGER: Well, I don't pay much attention to that one, but I think gaming is here to stay, if that's what you're talking about. And I like Bobby Kotick a lot. I consider him one of the reasonable people in that field. And I don't think he personally tolerated a lot of crazy misbehavior either.

ANDY SERWER: Want to broaden that out and ask you a little bit about technology, Charlie, because Warren often talks about understanding your circle of competence. And Berkshire has stayed away from tech for the most part, but you had investments obviously in Apple and Verizon, BYD and Amazon. With Greg Abel and Todd Combs and Ted Wechsler at the helm, tech is now about 45% of the portfolio. So is Berkshire shifting its strategy there?

CHARLIE MUNGER: Well, I think Warren and I have come to tech like some newborn infant that's dragged there. We've had to come because the reality has dragged us there. That's true all over America. Tech is here to stay.

ANDY SERWER: And Berkshire's biggest investment, Charlie, is in Apple. Do you expect Apple to continue to outperform other big tech stocks? And what's the future of Apple look like to you? You've got inflation, potential regulation, maybe potential headwinds like that.

CHARLIE MUNGER: Well, I think Apple is one of the strongest companies in the world. I judge the strength of the company based on how much the customers love it. And I've got zillions of friends who they'd almost part with their right arm before they'd part with their iPhone.

That's a hugely powerful position to be in. And I think Apple is one of the strong companies and will stay a strong company. And I think it's ungodly well-managed.