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Warren Buffett Talks IBM And His Ongoing Investment Loss

Warren Buffett Talks IBM And His Ongoing Investment Loss

Warren Buffett is confident in his investment in International Business Machines Corp. (NYSE: IBM), even though it is currently losing money.

Speaking to CNBC early Monday morning, Buffett acknowledged his average cost basis for IBM's stock is a slightly below $170 per share, implying an ongoing loss of approximately $25 per share.

IBM's stock closed at $145.95 on Friday. Shares have actually gained 6 percent since the start of 2016, but are nevertheless lower by more than 15 percent over the past year.

Related Link: Buffett Says Bezos Has Shown "Amazing Talent In Figuring Out How To Please Customers"

Over a 5-year period, IBM's stock has lost around 14 percent.

Buffett continued that he has never sold a share of IBM. In fact, his firm periodically acquires additional shares of "Big Blue."

"We haven't been an aggressive buyer," Buffett further emphasized. "But we have been a buyer. It's a company that has lots of tough competitors... and it will always have competitors. We see them doing some interesting things."

"Overall, we like it and I think we can safely say we would be much more likely to buy more in the next 12 to 24 months than we would be to sell shares," he concluded.


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