Buffett builds $10 bln stake in IBM

Discussion in 'Stocks' started by ASusilovic, Nov 14, 2011.

  1. Nov 14 (Reuters) - Berkshire Hathaway accumulated a 5.5 percent stake in IBM , Warren Buffett said on Monday, his biggest bet on the technology field that he has historically shunned.

    Buffett, in a CNBC interview, said he bought about 64 million shares of IBM, which cost around $10.7 billion. Berkshire started buying the shares in March with a goal to build a $10 billion position, he said.

    Buffett also said IBM did not know that he was building a stake, and that the company was finding out about his investment for the first time as he said it on CNBC.

    According to Thomson Reuters data, a 5.5 percent position would tie Buffett with State Street Global Advisors for the largest stake in the company.

    IBM shares rose nearly 1 percent in premarket trading.

    http://www.reuters.com/article/2011/11/14/buffett-ibm-idUSN1E7AD08C20111114
     
  2. ?.....!.....When traditionally, technology-shunning investors get excited about technology-related stocks.....you know the rest of the story. :cool: :eek:
     
  3. nitro

    nitro

  4. Two things:
    ibm is more of a consulting company. Warren is not known to jump into trends. In fact he generally avoids them.

    Then again, he's about to die and has more cash than god. So he might be playing around.
     
  5. ----Good points.
    ----When people who have more cash than God "play around" in the market....you know the rest of the story. :cool:
     
  6. robbo

    robbo

    Why be jealous about achievements of the worlds greatest investor. The guy is a genius. There is to many elitetrader members who post negative comments about him and they probably havent even earnt a dime from the markets.
     
  7. I agree. There is a lot of jealousy around him. I think it's because he's done fantastically well, speaks in plain english, and is against what most professionals are for: fees, fancy models, and ferraris.
     
  8. jem

    jem

    sure - no reason to question the guy.

    he bad mouths traders.

    he acts concerned for taxes on workers, while his company moodys ( he as a big stake) was mis rating investments so teachers and union workers could have their retirements raided by the wall street companies he associates with.

    He says taxes on companys investment decisions don't matter while charlie munger - his guy in charge says ebitda is bullshit earnings.


    http://buyingvalue.com/2009/05/munger-on-ebitda/

    and not for one minute would he take a big stake in IBM without getting really inside info from the executives.

    He lived across the street from the president of Coke.

    But you are correct... I would not mine being wealthiest guy in the world.

    Although I wonder if his cousin has a better life?