If Buffett Liked Tech, Here's What He'd Buy: CSCO, MSFT, AMBA

Warren Buffett used to define a "margin of safety" as a company that was trading close to - or even below - "breakup value."

Of course, that metric doesn't work as well today - especially in the parts of the tech sector that we like to focus on: You just aren't going to find many high-growth companies trading at bargain-basement levels.

But with U.S. firms sitting on a record $1.7 trillion in cash, you can find some name-brand tech firms whose cash reserves can cover a decent portion of their share price - creating a nice "margin of safety" as we move into the fall. (Good timing, considering everything that's happening - or not happening - in D.C. right now.)

I like to refer to these as "Cash is King" tech stocks. (more)

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