Berkshire Hathaway company, owned by Warren Buffett has invested $10.7 billion worth of IBM shares since March, amassing a stake of 5.5%, which is the largest investment ever made by American billionaire in the technology sector, writes Reuters. Buffett said Monday in an interview with CNBC that he bought in March about 64 million IBM shares, for which he paid 10.7 billion dollars. The billionaire said that IBM was not aware of this investment, revealed for the first time to CNBC. IBM representatives were not immediately available for comment.
Buffett said he always looked at IBM’s annual report, his preferred method to identify companies where to invest, but that this year he “read it with new eyes”. He added that after conversations with various executives of technology conglomerate Berkshire, he decided to buy a stake in IBM. According to Thomson Reuters, Buffett holds the largest stake in IBM, tied with State Street Global Advisors. Since the beginning of March, when Buffett started to invest in IBM, company shares rose 17%.
On the other hand American billionaire Warren Buffett, head of Berkshire Hathaway investment company, said that he doesn’t invest in European bonds as it is not clear whether Europe is willing and able “to do whatever is necessary” to resolve the debt crisis, according to CNBC. Buffett is concerned about the lack of trust in Europe, the victim of a partial withdrawal of investors.
Berkshire chief said that he analyzes every day bonds of European countries, but did not begin to invest again. In addition, the company he runs doesn’t have investments in banks in the euro area and he has not seen yet buying opportunities.
Europe “will not disappear”, and the region’s economy will be stronger in ten years, believes the billionaire. The interim period would be, however difficult, he warned. Italy’s and Spain’s borrowing costs have risen sharply in recent years, sparking fears that the two economies, some of the largest in the euro area could become victims of sovereign debt crisis.