Warren Buffett has preached for years that investors need to buy stocks in industries that they understand and for decades, he insisted that he avoided the tech sector because he didn’t understand it, even though he admires Amazon CEO Jeff Bezos.
That’s what made his decision to make a huge bet on International Business Machines Corp. (IBM) such a head-scratcher. Big Blue, to put it kindly, has loads of issues and has been slow to respond to the growth of cloud computing and other trends.
To his credit, Buffett realizes the error of his ways. Earlier this month, he unloaded about one-third of his stake in IBM shares and appears poised to sell even more shares, telling CNBC: “I don’t value IBM the same way that I did six years ago when I started buying. I’ve revalued it somewhat downward.”
Neither do many other investors.
Source: InvestorPlace
No comments:
Post a Comment