Wednesday, January 9, 2013

Why Warren Buffett Keeps Buying IBM




From Forbes: "After reading about the company for 50 years without making a move and shunning the entire tech sector for the majority of his career, Warren Buffett suddenly picked up over $10 billion in shares of IBM (IBM) recently for his company, Berkshire Hathaway. Buffett said in Nov. 2011 on NBC when he announced owning a stake in the company that “he would not be announcing it if he were not pretty much done” buying shares. But over the next three quarters he has found the stock attractive enough to continue buying, making it the second most-bought stock in his portfolio, and causing investors to ask why.

"Buffett praised IBM CEOs Lou Gerstner and Sam Palmisano in his 2011 annual letter for rescuing IBM from the brink of bankruptcy 20 years ago and making it into a successful business today. In addition to their “extraordinary” operational accomplishments, “their financial management was equally brilliant,” Buffett said, “particularly in recent years as the company’s financial flexibility improved. Indeed, I can think of no major company that has had better financial management, a skill that has materially increased the gains enjoyed by IBM shareholders…..”

Don't stop now.  Find out more at http://www.forbes.com/sites/gurufocus/2013/01/08/why-warren-buffett-keeps-buying-ibm/

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