Elephant Gun Captures $10.7B IBM Stake
Warren Buffet has come forward and said that Berkshire Hathaway Inc. has accumulated a 5.5% stake in IBM, the billionaire investor’s biggest bet in the technology field – a field he has normally not dabbled on the grounds that he didn’t understand it.
Personally, I think IBM is a fairly safe bet for Buffet who admittedly knows little about the IT field – if you were to guess which IT company Berkshire had invested in, you’d probably be able to guess IBM. Buffet said IBM’s long term roadmap was a major determining factor in the investment, “It’s a company that helps IT departments do their job better. It is a big deal for a big company to change auditors, change law firms or for IT departments to move away from using IBM. There is a lot of continuity to it.”
Famous for value investing, and pouring through the financials of companies – it is hardly surprising that Buffet found a company that has sticky revenues.
So can other IT/Tech companies start to rub their hands if all goes well for Berkshire at IBM and as they start to learn more about the sector? I think Berkshire’s thinking is going to be heavily influenced by IBM and what they hear from the executives.
