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Semiconductor industry

Warren Buffett's $10.7 Billion Bet on IBM Stuns Investors

Strategic Insights

— 1 min read

Warren Buffett's Berkshire Hathaway company has made a surprising investment in IBM, buying over $10.7 billion worth of the company's stock, representing more than 5 percent of IBM's total shares. The move marks a significant departure from Buffett's long-held stance on investing in high-tech companies, which he has previously deemed too unpredictable. According to Berkshire's quarterly update, the company has also made investments in Intel Corp., DirecTV, General Dynamics Corp., and CVS Caremark Corp. Buffett attributed his change of heart to IBM's shift towards a services-based business model, which he believes is more stable and intertwined with its customers.

Key Takeaways:

  • Berkshire Hathaway has spent $10.7 billion to buy over 5 percent of IBM's stock, a surprise move for the company given Buffett's historical aversion to high-tech investments.
  • The investment marks a departure from Buffett's long-held stance on investing in high-tech companies, which he previously deemed too unpredictable.
  • Berkshire Hathaway has also invested in Intel Corp., DirecTV, General Dynamics Corp., and CVS Caremark Corp., as revealed in the company's quarterly update.
  • Buffett attributed his change of heart to IBM's shift towards a services-based business model, which he believes is more stable and intertwined with its customers.
  • IBM joins several other American business icons in Berkshire's stock portfolio, including Coca-Cola Co., American Express Co., and Wells Fargo & Co.
  • Berkshire Hathaway's U.S. stock portfolio has grown to $59 billion, according to the company's quarterly update.

Statistics:

  • $10.7 billion: The amount Berkshire Hathaway has spent to buy over 5 percent of IBM's stock.
  • 64 million shares: The number of IBM shares Berkshire Hathaway has bought since March.
  • 5.5 percent: The size of Berkshire Hathaway's stake in IBM.
  • $59 billion: The size of Berkshire Hathaway's U.S. stock portfolio.
  • March: The month when Berkshire Hathaway began buying IBM shares.

Sources:

  • The Associated Press (cited article does not include author or date)
  • Berkshire Hathaway quarterly update (cited article does not include date)
  • IBM annual reports (cited article does not include date or specific reports)
  • Warren Buffett's public statements and interviews (cited article does not include specific dates or sources)
  • Various news articles and reports on Warren Buffett's investments (cited article does not include specific sources or dates)

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