International Business Machines Corp. (NYSE:IBM) might have lost up to 17% of value in the fourth quarter according to CNBC’s, Dominic Chu, but that could not stop billionaire investor Warren Buffett from increasing his stake in the company. The move by the billionaire investor Warren Buffett through his investment firm Berkshire Hathaway goes to affirm support for chief executive, Ginni Rometty, who is trying to reignite growth in the company.
The new investments by Berkshire Hathaway positions Buffett as the largest shareholder in International Business Machines Corp. (NYSE:IBM).
“The big headline here International Business Machines Corp. (NYSE:IBM). We know that the shares lost about 17% of their value in the fourth quarter. Well, Warren Buffett added to his position in IBM, boosting his position by about 9% shy of 77 million shares of IBM stock,” said Mr. Chu.
The regulatory filing also showed that Buffett exited all his position at ConocoPhillips (NYSE:COP) that were valued at $33 million while also selling off stakes at Exxon Mobil valued at approximately $3.8 billion. Buffett also increased his stakes in Charter Communications, Inc. (NASDAQ:CHTR) to 6.2 million shares as well as a 17 million share position in Deere & Company (NYSE:DE) worth $1.5 billion.
The new investments by Buffett in International Business Machines Corp. (NYSE:IBM) come on the heels of CEO, Rometty affirming commitment to focus on expanding sales of newer cloud computing and data analytics offerings. The move is intended to offset revenue loss on the divestiture of less profitable business units last year.
The exiting of Exxon Mobil Corporation (NYSE:XOM) by Buffett according Kevin O’Leary goes to show that oil could persist on the downward trend in the coming months. Adding more stakes in International Business Machines Corp. (NYSE:IBM), which has underperformed Exxon, goes to show Buffett’s confidence in the management team as well as the proposed plans that are expected to rejuvenate growth.
International Business Machines Corp. (NYSE:IBM) has already announced plans to expand on the cloud at the back of partnerships with the likes of Twitter Inc (NYSE:TWTR) and Apple Inc. (NASDAQ:AAPL) as the company pushes for a quick turnaround of the ailing profit margins.
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