Buffett Buys $10.7B in IBM

He now owns 5.5% of the company
By Kevin Spak,  Newser Staff
Posted Nov 14, 2011 8:13 AM CST
Buffett Buys $10.7B in IBM
In this May 2, 2011 file photo, Warren Buffett, Chairman and CEO of Berkshire Hathaway gestures during an interview, in Omaha, Neb.   (AP Photo/Nati Harnik, File)

(Newser) – Warren Buffett typically shies away from tech companies, but not this year. In an interview on CNBC this morning, Buffett revealed that he’s bought $10.7 billion worth of IBM stock since March, a purchase that had been kept confidential in Berkshire Hathaway’s recent filings. The buy gives Berkshire a 5.5% stake in the company. “It was something I should have spotted years earlier,” he said. “They’ve done all kinds of things right.” Indeed, the stock has already risen 11% since Buffett bought it.

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Buffett also expressed worry about the European debt crisis, saying it wasn’t clear that it had the will or ability to do “whatever it takes” to right the ship. The housing market, on the other hand, doesn’t worry him, because new families will always need homes. “Hormones still kick in, and we’ll still form households." (Read more Warren Buffett stories.)

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