On 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.
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 […]
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On October 7, 2016, the protest action was organised by Council of lawyers of the Kyiv city and Lawyers Council of Kiev region took place in Kyiv. Though this action will take place under walls of the Verkhovna Rada of Ukraine. However, the problems to which lawyers will pay attention, don’t concern people’s deputies. It […]
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The well-known British businessman Richard Branson said at the World Economic Forum, during a private event “Ukrainian lunch” in Davos, that he is ready to invest in the Ukrainian startups, told Andrei Kolodyuk, the partner of AVentures Capital, who visited the event. He also said that he talked to Branson and discussed the issue about […]
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The “Astelit” company in the near future will carry out the rebranding of mobile operator life. It is not just about changing the symbols and corporate colors, but also to change the name: new brand can get a name ‘lifecell’ similar to the parent company Turkcell. As well as the logo symbol of the Turkish […]
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Tesla shares reached their new peak on Thursday jumping 7.95% to a price of $1208.66. The manufacturer of electric cars Tesla was rated as the world most expensive automaker (in terms of market capitalization), overtaking the world leader Toyota Motor. Since the beginning of the year, Tesla shares have risen by 189% having climbed 166% […]
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Closing a topic of legal relations registration niceties with the builder, we have approached to the last which LDaily so-called as a”scheme” of investment attraction. It is apartment purchase through securities. This method deserves a special attention because it is simple, reliable and becomes more and more popular. Therefore builders practice the conclusion thicket and […]
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