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

  • The state will sell its stake in Lufthansa in the next two years
    News

    The state will sell its stake in Lufthansa in the next two years

    The Fund for Economic Stability (WSF), created by the German government, saved the largest German airline from bankruptcy after the collapse of air traffic in March 2020 with billions of infusions, but now there is a way out of the crisis, the concern said. Lufthansa intends to return to the state by the end of […]

  • Lufthansa will repay the state aid of 2.5 billion euros
    News

    Lufthansa will repay the state aid of 2.5 billion euros

    The German concern Lufthansa plans to remove the state from its co-owners by increasing its capital by 2.14 billion euros and returning the state anti-crisis aid received during the COVID-19 pandemic. These measures will begin before the elections to the Bundestag on September 26, the airline said on Sunday evening, September 19. From September 22 […]

  • Gazprom has delivered a record amount of gas to Turkey
    News

    Gazprom has delivered a record amount of gas to Turkey

    In 2021, Russia’s Gazprom supplied 20.3 billion cubic meters of gas to Turkey, which is the maximum figure in less than nine months. This was reported by the company’s press service following a meeting of its chairman Alexei Miller with Turkish Minister of Energy and Natural Resources Fatih Donmez on Monday, September 20. At the […]

  • The State Statistics Service has improved the quarterly economy
    News

    The State Statistics Service has improved the quarterly economy

    According to the updated data of the State Statistics Service, Ukraine’s GDP growth in the second quarter of 2021 was 5.7% in annual terms, which is 0.3% higher than the previous estimate. In particular, for six months the nominal GDP was UAH 1 trillion 169.4 billion, and per capita – UAH 28.19 thousand. Compared to […]

  • What help Ukrainian entrepreneurs need to export more
    Analytics

    What help Ukrainian entrepreneurs need to export more

    Exports of goods accounts for a third of Ukraine’s GDP.But we sell primarily raw materials abroad. It is a marker of underdeveloped countries and a path that does not contribute to economic development. Our state’s strategic task is to increase the exports of high-tech goods with high added value: that is, not just to grow […]

  • The Ministry of Finance named the main risks of the economy in 2022
    News

    The Ministry of Finance named the main risks of the economy in 2022

    Next year, Ukraine may face a number of macroeconomic risks that will greatly affect economic growth. The Ministry of Finance listed these risks. In particular, Ukraine may lose 0.6-0.8 percentage points of GDP growth due to too low grain yields, due to which the budget will not receive UAH 8.5 billion. At the same time, […]

  • Ryanair plans to become the main investor in Ukraine
    News

    Ryanair plans to become the main investor in Ukraine

    The low-cost airline Ryanair plans to expand in Ukraine if the open skies agreement with the EU is approved in the coming months. CEO Michael O’Leary stated this. O’Leary predicts the signing of an agreement between Ukraine and the EU by the end of 2021. “One of the markets I would single out is Ukraine. […]

  • Almost 740 enterprises have been put up for sale in Ukraine
    News

    Almost 740 enterprises have been put up for sale in Ukraine

    Ukraine plans to privatize 737 state-owned enterprises during 2021-2023. The Ministry of Economy published the list of objects for sale. Although some companies will be able to sell only after the amendments to the legislation. In particular, such large enterprises as Centerenergo, the United Mining and Chemical Company, Turboatom, the Zaporizhia Titanium and Magnesium Plant, […]

Read also

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

Microsoft topped the ranking of the most responsible employers

Created by Bill Gates, Microsoft third time topped the annual ranking of the 100 most responsible US corporations. This was announced by Forbes on Wednesday, October 14. Also in the top five of the updated list, in addition to Microsoft, included only technological giants – NVIDIA, Apple, Intel Alphabet. “Forbes compiled the rating together with […]

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

Uber Company attracts $ 2.1 billion of investments

The company plans to raise $ 2.1 billion of investments in a new round of funding. All the necessary documents have been drawn up and passed in Delaware. The world’s largest taxi service Uber, which head office is based in San Francisco, plans to spend the funds on its expansion, service development in Asia and […]

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

Ukraine has canceled the registration of foreign investments

President of Ukraine Petr Poroshenko has signed the law on the abolition of compulsory registration of  foreign investments, which took the Verkhovna Rada of Ukraine on 31 May. This report announced on the website of the President of Ukraine. The law abolishes certain articles of the statutes of the Economic Code of Ukraine and the […]

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

Apple announced the third presentation since the beginning of the year

Apple has announced that it will hold a presentation of new products next week – the third since the beginning of 2020. According to the company’s website, the event will be broadcast from the head office in California on Tuesday, November 10. The company announces the event with the words “One More Thing”. This phrase, […]

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

Investors plan to reorganize the management of Volkswagen

In December, Volkswagen expects more changes. December 7, 2015 the company went to Qatar, where they had meeting with one of its main investors, Qatar Investment Authority. Volkswagen representative Eric Felber pointed out that the visit is devoted to restructuring and improving the management and the most important shareholders should express their opinion on this […]

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

10 largest deals in the Ukrainian market for the year 2016

According to information provided by the consulting firm M & A Ukraine, last year was quite successful for the national business in terms of number of deals. Foreign investors have renewed their interest in the Ukrainian market and are willing to invest in its development. The apparent leader of the 2016 year in terms of […]

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

Barclays was fined for the record $ 72 million sterling

A few days ago was received a blow to the reputation of one of the five largest deposit banks in England – Barclays. The financial institution was fined by regulators for the amount of 72 million pounds for failing in managing, evaluation and controlling financial risks. According to the supervisory authorities, Barclays made significant mistakes […]

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

For the first time in two months, the National Bank entered the interbank market

This week, for the first time in recent months, the National Bank of Ukraine went to the interbank market and bought $ 40 million. At the same time, it did not intervene in the sale of currency. The website of the NBU reported this. Finally, the NBU resumed interventions on the interbank market after a […]

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

The WHO hopes to radically change the situation with the coronavirus by March

The World Health Organization expects that by the spring of 2021, the situation in the fight against the coronavirus pandemic could change significantly. The main hope is the invention of vaccine against the disease. This was stated by Adviser to the Director-General of the WHO Bruce Aylward. He noted that by March the situation could […]

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

Halliburton’s net loss in January-September was $ 2.7 billion

The net loss of the American oil service company Halliburton Inc., attributable to the main company, in January-September amounted to 2.71 billion dollars against the profit of 522 million a year earlier, according to the company reports. Halliburton’s diluted loss per share in the reporting period was $ 3.08 against earnings of $ 0.6 a […]

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

7 Founders Share What Their Worst Boss Taught Them

Online resource Entrepreneur has published interesting and instructive stories from the lives of American and Canadian founders of the business in which they share the lessons they got from the worse mentors in their life Be  a mentor  Name: Melissa Ben-Ishay, Company: Baked By Melissa Lesson: The importance of open communication. When I think of the […]

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

A new temporary head of Ukrzaliznytsia has been appointed

At a meeting on Wednesday, August 11, the government replaced the interim head of Ukrzaliznytsia, appointing Oleksandr Kamyshin to replace Ivan Yuryk. The people’s deputy Alexey Goncharenko reported about it. In 2012-2019, Kamyshin was Rinat Akhmetov’s SCM investment manager and a member of the supervisory board of the stevedoring company Portinvest. Since 2020 he has […]

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

IBI-Rating and UCRA announced a merger

The rating agency IBI-Rating and the Ukrainian credit rating agency (UCRA) announced a merger. Both companies have the status of authorized rating agencies of the National Commission on Securities and Stock Market of Ukraine and are engaged in the business on the credit rating according to the National Rating Scale. It is reported by the […]

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

Business failure: despair or lesson?

Each company and the man himself admits, sometimes failing, seemingly mistakes. But if it is really a failure or a good experience for the development shows a wonderful book of Laurence G. Weinzimmer and  Jim McConoughey “The Wisdom of Failure”. 5 small stories from the book will help you to understand that the business mistakes […]

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

Europe suspects McDonald’s in violation of tax legislation

The chain of one of the world’s most popular fast food restaurants McDonald’s is suspected in violating tax laws in Europe. Today, the European Commissioner for Competition Margaret Vestager plans to announce a formal investigation into tax treaties with Luxembourg McDonald’s – reports Reuters with reference to informed sources. The investigation is scheduled to consider […]

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

Financial conglomerate JP Morgan Chase will pay $ 307 million fine to regulators

JP Morgan Chase will pay $ 307 million as a fine to regulatory authorities. The reason of such decision of the regulators  is that the bank did not disclose the information about conflicts of interests  to investors in the implementation  of its own advertising investment products to clients. Based on the date of the Securities […]

Next
WP2Social Auto Publish Powered By : XYZScripts.com