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Buffett amasses IBM stake

by Lou Whiteman  |  Published November 14, 2011 at 10:43 AM
Buffett-amasses-IBM-stake227.jpgAfter decades of shunning the sector, Warren Buffett is warming to technology investing, disclosing on Monday, Nov. 14 that his Berkshire Hathaway Inc. has built a $10.7 billion stake in IBM Corp.

Speaking on CNBC, Buffett said Berkshire began accumulating the stake in March without the knowledge of executives at IBM's Armonk, N.Y., headquarters. The shares equal about 5.5% of IBM's total outstanding, making Berkshire the largest holder of the company's shares.

Buffett has famously avoided tech investing in the past, arguing that he was unwilling to put money in an unpredictable market that he did not fully understand. But IBM according to the investor is well-entrenched in its business and has been transparent in disclosing its future intentions,

"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 said according to reports. "They treat their stock with reverence."

Shares of IBM have been on a roll that began prior to Buffett's involvement. The company began the year trading at under $150 per share and hit a March high of $165.86 the month Berkshire began buying it. The stock traded at $188.86, up 1.5%, on Monday morning.

Berkshire Hathaway is expected to file its quarterly 13F report with the Securities and Exchange Commission outlining all of its holdings later Monday. In his CNBC interview Buffett said he has continued to buy Wells Fargo & Co., a core holding. He voiced a cautious view of euro-zone banks, saying it is not clear to him that Europe has the ability or the will to do "whatever it takes" to solve its current debt crisis. He said he expects Europe's economy to be stronger in ten years but warned it will likely take a long time for the region to recover from its current anemic state.
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Tags: 13F report | Berkshire Hathaway Inc. | euro zone | IBM Corp. | SEC | Securities and Exchange Commission | Warren Buffett | Wells Fargo & Co.

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