Buffett's investors facing more resolutions, like many firms

Janie Parker
May 6, 2017

Buffett owned some 81 million shares of IBM as 2016 ended, ranking as one of the tech giant's biggest investors.

Warren Buffett , the world's second richest man, told CNBC that Amazon (AMZN) founder Jeff Bezos , the world's third richest, is "the most remarkable business person of our age".

And investors are waiting to hear out Buffett's view of the global market, his rationale for the surprise bets on Apple and the four biggest USA airlines and views on other issues. That difference isn't huge, and Buffett will simply say that Mr. Market isn't valuing Berkshire shares as fully as he might in the future.

Without the Buffett buffer, IBM may receive more scrutiny around when they'll reach that inflection point.

Forrest did say she reexamined her position in the company once she heard of the Oracle of Omaha's move. More than 30,000 people are expected to attend the annual meeting, and participate in company-sponsored activities, though the main attraction is CEO Warren Buffett and Vice Chairman Charlie Munger's Q&A session on Saturday.

On Friday, shares of information technology stalwart IBM Corp. Prices range in the neighborhood of $150 and the investment firm has stopped selling off any further shares for now.

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Last year's results, meanwhile, included a $1.9 billion gain when Berkshire exchanged most of its Procter & Gamble Co stock for that company's Duracell battery business, plus cash.

-Stock price: $249,000 per Class A share as of May 2, 2017, roughly 6.5 percent below its $266,390 peak two months earlier. IBM's shares gained about 21 percent in 2016 after a run of three straight annual declines, and are still more than 25 percent lower than the company's 10-year peak in 2013.

IBM (NYSE: IBM) recently reported a loss in revenue for the 20th consecutive quarter.

There's no doubt Warren Buffett will comment on the massive stock market surge following Donald Trump's election win. Fidelity Independence is very similar, except it doesn't hold Coca-Cola, US Bancorp, or Berkshire. The odds of success are especially long at Berkshire because Buffett opposes the measures and controls about one-third of the vote.

Two common yardsticks for value investing show IBM's assets being downgraded by the market while estimated earnings have failed to keep pace with the stock price.

Other reports by TheDailyFarc

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