Warren Buffett Loves It When IBM Goes Down

Berkshire Hathaway Inc. (NYSE: BRK-A) (NYSE: BRK-B) chairman Warren Buffett was on CNBC Monday to discuss his investment in International Business Machines Corp. IBM, comparing it to his investment in American Express Company AXP. He also discussed the recent sell-off in media stocks.

IBM

On the fall in IBM's stock price, Buffett said, "I love it when it goes down. It means the company buys stock getting cheaper, it means I want to buy more stock. And you can look at our 13F in a few days, it means I get to buy it cheaper."

He elaborated, "People assume when we buy some stock, we want it to go up. We don't want it to go up. And maybe, obviously eventually five or 10 years we would like it. But we love the idea of a company buying its stock cheaper."

He continued, "I mean, that's happened in American Express for example. American Express is a regular re-purchaser of shares and we own 15 percent of it and our ownership goes up faster if the stock is down than if the stock is up."

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Slump In Media Stocks

Buffett shared his views on Walt Disney Co DIS's CEO Bob Iger and the recent sell-off in media stocks, saying, "I would say that I consider Bob Iger -- and I know him well and had experience with him more than 20 years ago -- I think he is one of great managers in America and a good guy beyond that. But, I'm a observer of the media picture. That Todd [Combs] and Ted [Weschler] own some shares in certain media stocks. But, I have no big commitments myself and the sell-off did not entice me."