Warren Buffett says he’s lost $2 billion on IBM

Warren Buffett says he’s lost $2 billion on IBM

10.11.2015 News

Warren Buffett says he's lost $2 billion on IBMOn Friday, Buffett’s Berkshire Hathaway announced that it has lost $2 billion on its IBM investment. That’s 15% of the more than $13 billion worth of IBM’s stock that Berkshire has purchased over the past four-plus years.

Berkshire says it is still committed to IBM, calling the downturn in IBM’s stock “temporary.”

“IBM continues to be profitable and generate significant cash flows,” Berkshire said. “We currently have no intention of disposing of our investment in IBM common stock. We expect that the fair value of our investment in IBM common stock will recover and ultimately exceed our cost.”

Berkshire started purchasing the stock in the first quarter of 2011 and bought in full-force later that year, when the stock was on a tear.

The bet was looking smart for a while, as IBM’s shares soared to record highs in early 2013. But since then, IBM’s stock has shed more than a third of its value.

Buffett has famously avoided investing in technology companies, yet his giant stake in IBM makes it one of Berkshire’s top four investments. As shares of IBM have fallen precipitously this year, Buffett saw an opportunity to buy even more shares, recently ramping up his investment.

But IBM is showing little sign of a quick turnaround. The company has not managed well with the industry’s rapid transition to the cloud, playing catch-up to Amazon and Microsoft. The cloud business is growing strong, but hardware sales are in a tailspin, and IBM just reported its 14th consecutive quarter of sales declines.

Yet Buffett has insisted that IBM is not a short-term investment. He said more than four years ago when he started buying up IBM that he was in it for the long-haul.

Noticed, that Warren Buffett is the most successful investor of 20th century. He is chairman, CEO and the largest shareholders of Berkshire Hathaway.

IBM – American multinational technology and consulting corporation, with headquarters in Armonk, New York. IBM manufactures and markets computer hardware, middleware and software, and offers infrastructure, hosting and consulting services in areas ranging from mainframe computers to nanotechnology.

Other articles

  • globallogic hexacta
    News

    GlobalLogic Acquires Hexacta, an Innovative Digital Engineering Firm in Latin America

    Company Continues Strategic Expansion Adding New Service Capabilities, Talent, and Broadening Nearshore Footprint SAN JOSE, Calif.—January 5, 2023— GlobalLogic Inc., a Hitachi Group Company and Digital Engineering Leader, today announced the acquisition of Hexacta, a Pan-Latin-America digital and data engineering company. The acquisition is part of GlobalLogic’s continued strategy to expand its offerings, and its […]

  • Тест
    Analytics

    Тест

    тест     тест

  • globallogic healthtech 1
    News

    GlobalLogic engineers help create nearly 10% of the global medical device market

    Last year, the global medical device market reached $532.62 billion, according to Mordor Intelligence. Ukrainian engineers are involved in the projects of key players, which occupy almost 10% of the market. This share can be estimated at 50 billion US dollars*. Domestic specialists create more than a hundred software solutions of various levels. These include […]

  • 2779913
    News

    Twitter працює над відновленням відеосервісу Vine

    Новий власник Twitter Ілон Маск доручив інженерам попрацювати над перезавантаженням Vine, яке може бути готове до кінця нинішнього року. Про це повідомляє Axios. Зазначається, що інженерам компанії необхідно вивчити стару кодову базу відеосервісу, яка не змінювалася та не оновлювалася з моменту закриття, а саме з 2016 року, коли з’ясувалося, що майданчик не витримує конкуренції. Втім, одне з […]

  • picturepicture 156446930057951110266878 96171
    News

    CREDIT AGRICOLE TOPS THE SOCIAL RESPONSIBILITY RATING AMONG BANKS ACCORDING TO STANDARD-RATING

    Credit Agricole has been ranked first in the social responsibility rating of the banking sector, created by Standard-Rating based on the 2022 half-year results. The rating agency commended the bank’s contribution to the economy of Ukraine. The bank has paid UAH 100 million in taxes in advance, while issuing UAH 1.2 billion in loans under […]

  • impact automotive
    News

    How Ukrainian developers make impact on road safety

    From October 1, drivers must turn on the dipped headlights of the car outside the city. This helps to additionally mark the vehicle in conditions of low visibility within the autumn-winter period. GlobalLogic reminds about the importance of compliance with traffic rules and tells about the developments of Ukrainian engineers that affect road safety. In […]

  • 750x450 press release image ua
    News

    Intellias completes acquisition of Digitally Inspired, strengthening expertise in the Retail and eСommerce industry

    Intellias, a global software engineering and digital consulting company, has announced the completion of its acquisition of Digitally Inspired, a fast growing, UK based peer, focusing on the Retail and eCommerce industry. “I am delighted to welcome the Digitally Inspired team to Intellias. It is symbolic that Intellias’ twentieth anniversary coincided with signing an agreement […]

  • shutterstock 1920327596
    News

    3×4, a recently-founded Ukrainian Web3 fundraising platform, launches its first campaign

    3×4, a Web3 fundraising platform for non-profits, has been launched in Ukraine to bring innovative crypto & NFT fundraising to the rising number of social impact causes. 3×4 helps non-profit organizations to fundraise utilizing NFTs in collaborations with artists and brands while providing donors utility, revenue and transparency. The idea of 3×4 was born in […]

Read also

Warren Buffett says he’s lost $2 billion on IBM
News

Poland postponed the beginning of the exploration of gas in Ukraine

Polish oil and gas company PGNiG has postponed the start of gas exploration in Ukraine to the first half of 2021, said the head of the company Jerzy Kwentczycki. “PGNiG also intends to participate more actively in projects related to hydrocarbon production in Ukraine. The company plans to start exploring of the natural gas in […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Lufthansa has announced large-scale job-cuts

By the end of this year, the German airline Lufthansa intends to reduce its foreign staff by 20 thousand people, as well as sell its LSG division, which deals with on-board catering, which employs 7.5 thousand people. Lufthansa subsidiaries Eurowings, Swiss, Austrian and Brussels Airlines are reducing the frequency of flights, fleets and staff amid […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

For purchase of the vaccines COVID-19 will be allocated 2.6 billion UAH

Ukraine will allocate 2.6 billion hryvnias for the purchase of a coronavirus vaccine. This was stated by Finance Minister Serhiy Marchenko at the press conference on Monday, September 14. “By 2023, we have a real opportunity to ensure health care spending at 5%. There is an increase in 2021 to 4.2% of GDP for health […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Airbus will lay off 15,000 employees due to the quarantine

European airline Airbus will lay off 15,000 employees worldwide due to the restoration of the quarantine restrictions on the flights. This was stated by the Airbus Chief Operating Officer Michael Schollhorn. Prospects for the aviation industry deteriorated again due to the growing number of the coronavirus infections, he said. According to Schollhorn, the situation in […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Tesla is recalling 50,000 vehicles

Tesla is recalling about 50,000 Model S and Model X cars manufactured in the United States in different years and imported to China due to the identified suspension problems. This was reported on its website by the Chinese State Administration of Market Regulation. According to the statement of the Chinese regulator, almost 30 thousand Model […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Thermo Fisher merges with the Affymetrix company

The largest manufacturer of equipment for laboratory research Thermo Fisher, conclude a purchase deal to buy the Affymetrix company, which develops integrated solutions for genetic researches, for $ 1.3 billion cash. Following the announcement of the transaction, shares of the Affymetrix company sharply increased in price by 50%. Currently, Thermo Fisher estimates Affymetrix estimates at […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

DiDi taxi service is planning the IPO on the Hong Kong Stock Exchange in 2021

The taxi service of the international Chinese company DiDi Chuxing intends to conduct the initial public offering (IPO) on the Hong Kong Stock Exchange. As reported by Reuters on Tuesday, citing sources, this may happen in the first half of 2021. By the time of the IPO, the estimated value of DiDi will be more […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

From 2023, multinational corporations must pay corporate tax at a rate of at least 15%

The agreement on a single corporate tax rate of at least 15 percent was signed by 136 states, which account for more than 90 percent of world GDP. The agreement is aimed at combating tax evasion by international corporations. The initiative was also signed by countries that were initially opposed to tax reform, such as […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

IT goes local. Ukrainian IT company opens new office spaces in Vinnytsia, Khmelnytskyi, Uzhhorod, and Odesa

SoftServe is expanding its presence and opening new office spaces in four cities — Vinnytsia, Khmelnytskyi, Uzhhorod, and Odesa. They are available for 250 people working in these regions as well as other employees.    The coworking in Vinnytsia where SoftServe has around 50 employees is already fully operating. Odesa is the next — office space […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Alibaba Group offers for the purchase of Chinese Intime Retail $ 2,6 billion

The international business publication The Financial Times published the news that the public company Alibaba Group of China, experienced e-commerce giant, plans to become the owner of an investment holding company Intime Retail, bought its controlling stake at a price of more than two and a half billion dollars. Intime Retail owns 29 shops and […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

The value of bitcoin has approached $ 20 thousand

Last week, the value of cryptocurrency fell sharply, but now it is approaching a historic high again. According to Coin Desk, after a sharp drop last week, the value of bitcoin broke the record and reached $ 19,686. Thus, the cryptocurrency exceeded the value recorded on December 16, 2017 by $ 20,665. But the absolute […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Tesla Shares fell due to a bad news from China

Shares of Tesla closed on Monday with a fall of 1.44%, continuing to decline on Tuesday, their price is now below $ 2000. This situation was preceded by a Bloomberg publication on reducing the number of registrations of Tesla, electric cars made in China. Tesla did not confirm the information; in its reports the company […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Here is our joint issue with the German-Ukrainian Chamber of Commerce and Industry!

Цей випуск присвячено надбанням і успіхам співпраці обох країн. Дипломати й бізнесмени німецьких компаній в Україні розповідають про свій шлях на ринку країни, діляться досягненнями, а також досвідом у запровадженні інновацій у компаніях та планах на майбутнє. Ернст Райхель, Надзвичайний і Повноважний Посол Німеччини в Україні, – про необхідність і перспективи активізації німецько-українських відносин. Андреас […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Two bankrupt banks try to return on the market

A head of the National bank of Ukraine appeals to law enforcements  with the request  to inspect Soyuz and Veles banks. It returned  to work in spite of the fact that the Central Bank had decided its liquidation.  V.Gontareva informed on Thursday that  these two banks recently had renewed its work. NBU stopped its functioning […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

Musk promises that the Tesla plant near Berlin will become the world’s largest battery manufacturer

Tesla CEO Elon Musk wants to turn the Tesla plant near Berlin into the world’s largest factory for the production of batteries for electric vehicles. The businessman stated this on Tuesday, November 24, speaking via video link at the European Conference of Battery Manufacturers. The plant near Berlin will be one of a kind as […]

Next
Warren Buffett says he’s lost $2 billion on IBM
News

OPEC + countries have agreed to increase oil production

OPEC + member states have agreed to increase oil production by 400,000 bpd per month from August. This is stated in a press release from OPEC. It is noted that the OPEC + countries will seek to eliminate the current restrictions in September 2022. Thus in December, 2021 the estimation of the market is given. […]

Next