IBM tumbles as Buffett discloses he is trimming stake
New York (AFP) – IBM shares tumbled Friday after billionaire investor Warren Buffett revealed he has sold about a third of his stake and “revalued” downward the computing giant.
In early Wall Street trade, IBM shares were down 2.5 percent at $154.00.
Buffett, one of IBM’s biggest shareholders, told CNBC he had divested shares in the first and second quarter.
“I don’t value IBM the same way that I did six years ago when I started buying,” he told the financial channel. “I’ve revalued it somewhat downward.”
Buffett added that “IBM is a big strong company, but they’ve got big strong competitors too.”
Buffett, who heads the Berkshire Hathaway holding company and is among the world’s richest individuals, invested some $10.7 billion in IBM in 2011 for a stake of some 5.5 percent. His stake was worth an estimated $13.5 billion at the end of 2016.
The move comes with Buffett set to release his closely followed annual shareholder letter, offering important clues for investors who follow his advice.