News Column

Warren Buffett Reveals Huge IBM Stake

Nov. 14, 2011
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Warren Buffet has made a $10.7 billion investment in IBM through his Berkshire Hathaway holding company, the mega-investor revealed Monday.

Buffett told financial cable network CNBC that he had bought some 64 million Big Blue shares since March, giving him some 5.6 percent of the company's stock.

The massive investment represents Buffett's largest ever investment in a technology company, a sector he has shied away from in the past because of its volatility and difficulty in predicting which companies will carve out dominant positions.

But he revealed that after talking with IT experts at many of his companies he realized that IBM had a long-term advantage in providing technology services to businesses.

"They've done an incredible job" in laying out a roadmap for the future, Buffett said on CNBC.

"It's a company that helps IT departments do their job better," Buffett said. "It is a big deal for a big company to change auditors, change law firms," or for IT departments to move away from using IBM, he said. "There is a lot of continuity to it."

Thus, IBM is set for years of growth as it locks in existing clients and signs up new ones.

"It was something I should have spotted years earlier," he said.

Source: Copyright 2011 dpa Deutsche Presse-Agentur GmbH

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