Legendary investor scoffs IBM stake, nibble by nibble
Buffett makes first real bet on the tech sector
Super-investor Warren Buffett's Berkshire Hathaway biz has revealed that he has spent most of this year buying up a 5.5 per cent share in IBM.
The "Oracle of Omaha" said Berkshire had bought $10.7bn of IBM's stock to take a stake that makes it, along with State Street Global Advisors, one of the largest investors in the company.
Buffett traditionally stays away from stakes in technology firms because he doesn't understand them, but said IBM was different.
"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 change IT support]," Buffett said in a CNBC interview in the US.
He also said that IBM didn't know his company was building a stake in it and would be finding out from the TV show like everyone else.
Berkshire started buying Big Blue shares back in March with a view to secure $10bn worth of stock.
An IBM spokesperson could not be reached for comment at the time of publication. ®