Buffett invests $10.7 billion in IBM, builds 5.5-per cent stake
14 Nov 2011
Billionaire investor Warren Buffett's Berkshire Hathaway Inc has bought a 5.5-per cent stake in IBM, worth a total $10.7 billion, his biggest investment in technology so far.
Buffett, who has so far been shying away from investing in technology companies, said the investment was guided by IBM's long-term roadmap and its entrenched position in major businesses as also the competitive advantage the company offered.
"I don't know of any large company that really has been as specific on what they intend to do and how they intend to do it as IBM," Buffett told CNBC in an interview.
Berkshire started buying the shares in March, buying up stocks worth $10.7 billion, Buffett said, adding that IBM was not aware that he had bought about 64 million shares of IBM worth over $10.7 billion.
Buffett said IBM did not know that he was building a stake and that the company was finding out about his investment for the first time as he disclosed it on television.
Berkshire is due to make a quarterly report of its equity holdings tonight.
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