Warren Buffett says he sold a third of stake in IBM: CNBC

Berkshire Hathaway CEO Warren Buffett plays bridge during the Berkshire annual meeting weekend in Omaha, Nebraska May 3, 2015. REUTERS/Rick WilkingWarren Buffett said he has sold about one-third of Berkshire Hathaway Inc's (BRKa.N) big stake in IBM Corp (IBM.N), CNBC reported on Thursday, reducing a bet by the famed investor that surprised many and which so far has yet to prove successful.

IBM's stock touched $180 on Feb 14 and reached a high of $182.78 during Feb. 16 trading. It closed on Thursday at $159.05 on the New York Stock Exchange.

Berkshire and Buffett's assistant did not immediately respond to telephone and email requests for comment. IBM could not be reached for comment outside regular business hours.

Buffett owned about 81 million shares of IBM at the end of 2016 and sold about a third in the first and second quarters of 2017, CNBC reported, citing Buffett.

"I don't value IBM the same way that I did six years ago when I started buying ... I've revalued it somewhat downward," Buffett told CNBC in an interview.

The IBM investment was initially viewed as a surprise, given Berkshire's longstanding underweighting in the technology sector and Buffett's resistance to investing in businesses he considered more difficult to understand.

The IBM stake had grown to be one of Berkshire's largest stock investments, along with such companies as American Express (AXP.N), Coca-Cola (COKE.O), Wells Fargo (WFC.N), and more recently Apple (AAPL.O) and Kraft Heinz (KHC.O).

Buffett has long been willing to sell stock investments, as opposed to entire businesses, when they do not pan out or he finds something better.
"IBM is a big strong company, but they've got big strong competitors, too," he said.

Berkshire Hathaway still owns over 50 million shares of IBM and Buffett said he has stopped selling.

In April, IBM reported a bigger-than-expected decline in revenue for the first time in five quarters due to weak demand in its IT services business.
Source:Reuters
Category and Tags
Add a comment
More stories by
Free treatment for elderly above 65yrs on the cards: Minister

Health and Family Welfare Minister Jahid Malek.

Should Zunaid Ahmed Palak need to say sorry for a ride in a bike as a passenger without a helmet?

Photo: Sir Zunaid Ahmed Palak's Facebook First of all, I would like to give thanks to Mr.

Move on for cost-free remittance by expats

A move is under way to facilitate sending of money back home free of cost by the Bangladeshi migrant workers.The Ministry of Finance (MoF) has prepa...

Bangladesh exports bounce back, up 55 pct in September

Bangladesh exports in September surged 55 percent from a year ago to $3.

Bangladeshi young generation should practice more team work and grouping

I think young generation in Bangladesh like to feel self centralized and self sufficient.

Follow Business Habit on Facebook, Twitter