Warren Buffett Sells One Third of IBM Stake ~ market folly

Friday, May 5, 2017

Warren Buffett Sells One Third of IBM Stake

On the heels of Berkshire Hathaway's annual meeting, CNBC's Becky Quick has reported that Warren Buffett has sold about a third of his stake in IBM (IBM) in the first and second quarters of 2017. 

Buffett is quoted as saying, "I don't value IBM the same way that I did six years ago when I started buying ... I've revalued it somewhat downward."

It seems that once IBM started trading above $180 they started selling. 

Buffett cited increased competition as one of the main drivers of his decision.  Berkshire still owns over 50 million IBM shares.

In other recent portfolio activity, we highlighted how Berkshire Hathaway had been buying Liberty SiriusXM.

Per Google Finance, IBM is "a technology company. The Company operates through five segments: Cognitive Solutions, Global Business Services (GBS), Technology Services & Cloud Platforms, Systems and Global Financing. The Cognitive Solutions segment delivers a spectrum of capabilities, from descriptive, predictive and prescriptive analytics to cognitive systems. Cognitive Solutions includes Watson, a cognitive computing platform that has the ability to interact in natural language, process big data, and learn from interactions with people and computers. The GBS segment provides clients with consulting, application management services and global process services. The Technology Services & Cloud Platforms segment provides information technology infrastructure services. The Systems segment provides clients with infrastructure technologies. The Global Financing segment includes client financing, commercial financing, and remanufacturing and remarketing."

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