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Warren Buffett's Berkshire Hathaway Increases Exposure To IBM

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Warren Buffett's Berkshire Hathaway Increases Exposure To IBM

Legendary investor and Berkshire Hathaway CEO Warren Buffett appeared on CNBC Monday and discussed several issues including the recent pullback and volatility in the market, his firm’s investment strategy, and his stakes in Phillips 66 (NYSE: PSX) and International Business Machines Corp. (NYSE: IBM).

Buffett & IBM

The Oracle of Omaha boosted his already large exposure in IBM by 3 percent, or 2,593,298 shares, over the first quarter of the year to 79,565,115 shares. The second quarter witnessed no changes in this position, worth almost $13 billion.

This stake still made Berkshire Hathaway the largest institutional investor in the company.

Now, Buffett said he had once again increased his wage on the tech giant in the third quarter of the year.

Related Link: What The Buffett Indicator Means For Stocks

When asked if he saw the recent pullback in the market as reason to be buying, Buffett said, "we're buying because we like what we're buying in relation to its long-term prospects (…) If we liked it at X [price] a few weeks ago, and it’s 95 percent of X now, I like it even better."

Shares of IBM were up almost 2 percent on Tuesday. Since the beginning of the third quarter, shares are down almost 10 percent.

Other investment firms betting on IBM include the Vanguard Group, which last disclosed ownership of 57,780,087, and hedge fund Diamond Hill Capital Management, managed by Ric Dillon, which owns 1,346,221, according to its latest 13F filing.

 

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