Warren Buffett adds to Apple stake, bails further on IBM

Wednesday, 15 Nov, 2017

Warren Buffett's company sold nearly a third of its remaining IBM shares in the third quarter and made several tweaks to its stock investments.

Berkshire also cut its stake in IBM by 32 percent, or 17.06 million shares, in the third quarter, according to a required quarterly filing with the U.S. Securities and Exchange Commission released Tuesday. Investors watch Berkshire's filings closely because of Buffett's successful record.

It had by the end of September reduced its IBM stake by 54 percent since the end of 2016, when it owned roughly 81 million shares.

Mr. Buffett loading up on Apple is a huge vote of confidence in Apple's business model and their competitive positioning, while him selling IBM shares does the exact opposite to IBM.

During the quarter, Berkshire also boosted its stake in Apple to 134.1 million shares worth $20.7 billion, and became Bank of America's largest shareholder by exercising warrants for 700 million shares.

"IBM is a big strong company, but they've got big strong competitors, too", he said. Before this spring, Berkshire held more than 80 million IBM shares.

Berkshire is one of Wells Fargo's largest shareholders, with a almost 10% stake.