Warren Buffett defends Microsoft

Warren Buffett says Microsoft is just fine as it is

Billionaire investor Warren Buffett has risen to the defence of his friend Bill Gates.

Speaking to shareholders at his company Berkshire Hathaway's annual meeting, he criticised the government's antitrust case against Microsoft.

"I think we've got something that is working very well and I wouldn't want to tinker with it very much," Mr Buffett said.

The US Government on Friday called for the world's largest software manufacturer to be split into two separate companies in order to limit its market dominance and curtail its perceived anti-competitive practices.

Microsoft has said such a move would harm not only its customers, but the entire hi-tech economy.

Threat to economy

Twenty years ago, the US had feared losing its economic dominance to Germany and Japan, Mr Buffett said, but companies like Microsoft had enabled it to stay ahead.

"I wouldn't want to take a meat ax to something that is pulling us along in a very important way," Mr Buffett said on Saturday.

"The fact that I do not own technology stocks does not mean I don't think its important. I do not like the idea of changing something that is working," he said.

Hard times at Berkshire

Mr Buffett's defence of Microsoft came as he faced shareholders following the company's worst performance in 35 years.

Earnings dropped 42% to $1.6bn last year.

His reluctance to buy technology stocks has hit Berkshire Hathaway's profits.

The company has also been hit by losses at its insurance companies as well.

A lot of Berkshire's earnings come from insurance, through its ownership of General Re, the largest reinsurer in the US, and the car insurer Geico.