Warren Buffett Sheds More IBM Stock
Warren Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) made a nearly $11 billion bet on tech giant International Business Machines (NYSE: IBM) in 2011. The move seemed out of character for Buffett, who typically shuns tech stocks for being well outside his circle of competence. But IBM's entrenched status in many industries gave it competitive advantages that Buffett couldn't resist.
Buffett began rolling back this decision earlier this year, dumping about one-third of his position prior to Berkshire's annual meeting. He cited tough competition, saying he had revalued the stock "somewhat downward" as a result. With revenue slumping for more than five years, those competitive advantages had clearly eroded.
Berkshire's latest regulatory filing shows that Buffett has trimmed this multi-billion-dollar stake even further. Berkshire owned 37 million shares of IBM as of Sept. 30, worth about $5.5 billion today. That's down from around 50 million shares earlier this year. IBM's turnaround effort has dragged on, and even Buffett's legendary patience has run thin.
Source: Fool.com
