IBM shares have tumbled 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% 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%. 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.
Culled from BizCommunity