Buffett Buys Stake In IBM at Historical High

Buffett, for whom my lack of respect is growing bigger and bigger every day seems to be piling on the mistakes.

This week, the corrupt Oracle of Omaha announced that he's invested $10 billion in IBM, after refusing to invest in any tech stock for more than 60 years. And he does this at the worst possible time ever: IBM is trading at a historical high price — that's right, this is a value stock! — while the markets are also trading at multi-year high, and the sovereign countries around the world are on the verge of the biggest debt crisis ever.

My only hope is that he remains in charge just a couple of extra years until he meets the same fate as Greenspan and other lucky then ridiculed giants of the past.
Nov. 15 (Bloomberg) -- Warren Buffett, who bought a railroad in his biggest acquisition, turned to a century-old technology company in the third quarter to help guard his Berkshire Hathaway Inc. against economic slumps. 
Buffett spent more than $10 billion buying International Business Machines Corp. stock, his biggest investment in the period. The stake gives Berkshire 5.5 percent of a company that has moved from competition with Apple Inc. and Dell Inc. to focus on providing business clients with software and services. IBM sold its personal-computer business in 2005 and has beaten the Dow Jones Industrial Average each year since.

The best time ever to buy $10 billion worth of IBM shares, right?


Tiho said...

While this purchase at all time new highs does not look good right, who knows how it will play out. Besides Buffet is a smart money man, much much much smarter than you. That is why you write on your blog about him.

He doesn't just buy for the sake of price and capital gain. He buys businesses, their boards and their cash flows. His a businessman.

Besides, what is he mant to do. Hold his money in US Dollars or buy Bonds? Hahahahahahaha that is a suicide investment going forward.

pej said...

He's obviously skilled at buying and holding. And he has benefited from the biggest bull market and credit bubble in history.

I just hope he remains long enough the boss at Berkshire for him to be ridiculed when all the puts he's sold on the S&P and all the stupid investments he made in banks sour.