In November 2011, Warren Buffett revealed that he purchased $10.7 billion worth of IBM common stock to add to the ballast of publicly traded investments in the portfolio of Berkshire Hathaway. He has added to the IBM positions in the five years since the bulk of the initial investment, but the average price was $169 (this amount is constantly subject to revision as Buffett adds to the position).
People who are stirred by changes in stock price are well aware that shares of IBM have fallen to $122 from $169, and those who study the fundamentals of the business are well aware that this stock price fall can be tied to falling revenues. IBM generated $106 billion in revenues back in 2011, and only generated a little over $80 billion in revenues by the end of 2015. IBM’s ability to grow revenues has been an issue since the early 1980s, and decided to begin executing a strategy of permanent stock buybacks in 1993 to offset some of these fluctuations.