 "Buffett back in money on IBM")
International Business Machines has climbed above the price that Warren Buffett paid for shares in the computer company, reversing more than $2 billion in paper losses for his Berkshire Hathaway.
IBM rose 2.2 per cent to $170.55 at 4 pm Friday in New York after giving 2017 profit guidance on Thursday that was higher than analysts’ estimates. That compares with the average of $170.19 that Buffett spent for 81 million shares, according to Omaha, Nebraska-based Berkshire’s most recent annual report.
IBM has outperformed so-called momentum tech stocks such as Amazon.com and Facebook after Donald Trump’s election win as investors shifted to companies with consistent dividends and buybacks, said Dan Morgan, senior portfolio manager at Synovus Trust.
“Buffett is a value guy, and is helped when the pendulum swings to the value side of the sector, as opposed to a momentum player,” said Morgan, adding that his firm has more than 300,000 IBM shares.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%