Buffett buys 5.4% stake in IBM
Investor says he was impressed by IBM’s road map for attracting IT firms outside US
Warren Buffett has purchased a 5.4% stake in IBM. Buffett's Berkshire Hathaway fund began buying shares in the firm in March 2011 and has spent approximately $10.7bn on shares so far, according to the BBC.
Buffett, who is one of the world's most closely watched investors has steered away from technology firms in the past, but said that he had been impressed by IBM's road map for how it planned to attract IT firms outside the US to sign up to its services.
"If you're in some country around the world and you're developing your IT department you're probably going to feel more comfortable with IBM than with many companies," he told the US television station CNBC.
Buffett said that he began buying stock after he read IBM's 2010 annual report and spoke to technology professionals in businesses his fund already invested in.
Buffett said that he does not plan to increase his investment in the company and said he had not told IBM's chief executive, Sam Palmisano, about the investment before announcing it on TV.
Before Buffett's purchase, the US bank, State Street, was the biggest known investor in IBM with a 5.5% stake.
Buffett is closely watched by other investors as he is known for spotting and buying undervalued stocks. IBM's shares only rose slightly after the broadcast.
IBM is not commenting on the news at this time.