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Warren Buffet's stock moves: Cuts stake in IBM by 32%; adds to Apple

Berkshire also reported lower stakes in Wells Fargo & Co and cable TV company Charter Communications Inc. It also no longer reported a stake in Wabco Holdings Inc

Reuters  |  NEW YORK 

Warren Buffet
Warren Buffet

Warren Buffett's Inc has sold another large piece of its stake in Corp, backing further away from an investment that the billionaire has admitted was not one of his best.

Berkshire cut its stake 32 per cent in the third quarter to about 37 million shares worth $5.37 billion from 54.1 million shares worth $8.32 billion, according to a Tuesday regulatory filing detailing its U.S.-listed stock holdings.

The share stake has fallen by 54 percent since the end of 2016 when Berkshire owned roughly 81 million shares for which it paid about $13.8 billion.

During the quarter, Berkshire also boosted its stake in Inc 3 percent to 134.1 million shares worth $20.7 billion and became Bank of America Corp's largest shareholder by exercising warrants for 700 million shares.

IBM, whose full name is Business Machines Corp, accounted for most of the stock sales that Buffett and his deputies Todd Combs and Ted Weschler made in the quarter.

In May, Buffett revealed he had begun selling IBM, telling CNBC he did not value Big Blue as highly as he did six years earlier when he started buying.

"is a big strong company, but they've got big strong competitors, too," he said.

The investment had been viewed as a surprise, given the 87-year-old Buffett's resistance to investing in technology and businesses he found harder to understand.

Berkshire has said it paid an average of about $170 per share for The shares closed up 49 cents at $148.89 on Tuesday but fell in after-hours trading.

For the third quarter, Berkshire also reported lower stakes in Wells Fargo & Co and cable TV company Charter Communications Inc, and higher stakes in seed company Co and credit card issuer

It also no longer reported a stake in Wabco Holdings Inc , which sells brake and suspension systems for commercial vehicles.

Berkshire is one of Wells Fargo's largest shareholders, with a nearly 10 per cent stake. In April, it withdrew a Federal Reserve application for permission to exceed that level, citing restrictions on its ability to do business with the bank.

 

 

First Published: Wed, November 15 2017. 10:37 IST
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