Warren Buffett Buys More IBM Stock

Those whose ears now respond only faintly to the suggestion that IBM stock continues to be unusually cheap are understandably soured on a company whose four-year performance of losing 3% annually coincides with a period of 13.5% annual gains in the S&P 500.

The financial media have been persistent in coming at IBM shareholders from every direction to narrate the Armonk firm’s woes–declining hardware sales, twelve consecutive quarters of shrinking revenues, earnings per share declines, a tumbling stock price, late entry into cloud technology, sluggish demand from the BRIC countries, and currency headwinds. Some have
regarded IBM’s performance as a thorn in the halo of Warren Buffett’s half-a-century track record due to the 28% decline in the price of IBM stock since Buffett began Berkshire’s accumulation of it.

Nodding to Mark Twain, however, there is reason to believe that the death of IBM has been greatly exaggerated. The analytics division … Read the rest of this article!