# Ibm



## Uranium101 (Nov 18, 2011)

Now that IBM is at it's 52 week low and Buffett has a huge stake in it. What do you guys think?

I bought some at 173 yesterday. Their sales are bad when it comes to hardware, but they services remained the same. Cutting cost and buying back shares to boost EPS.


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## PatInTheHat (May 7, 2012)

I certainly can see the optimistic side and getting in at such a low price compared to Buffet really makes you wonder however I sold out at $190. I think it's going even lower in the interim. I also see no catalysts for improvement.


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## Uranium101 (Nov 18, 2011)

Well, Buffett is holding it for the long run. Since you sold at 190, then getting back in now would have saved you a lot of money. That is, if you believe in the company.


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## james4beach (Nov 15, 2012)

I think Buffett holding a stock is very different than you or I owning a stock. He's a big enough shareholder (between Berkshire and his own holdings) that he can influence a board to do what he wants.

When you or I hold a stock, we're just a small guy along for the ride. I think there's a big difference


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## jcgd (Oct 30, 2011)

This is precisely what Buffet said he wants. He wants the price to stay low so he owns more of the company as IBM buys back stock. Just thought I'd point this out. I think it was in the 2012 annual letter.


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## Just a Guy (Mar 27, 2012)

Robert Cringley has a lot of insight into IBM. 

http://www.cringely.com/tag/ibm/


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## PatInTheHat (May 7, 2012)

Just a Guy said:


> Robert Cringley has a lot of insight into IBM.
> 
> http://www.cringely.com/tag/ibm/


This is a ton of info. Any chance you can offer some cliff notes?


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## doctrine (Sep 30, 2011)

IBM is showing a P/E of 12 and a dividend essentially doubling since 2009. If the P/E is accurate and earnings aren't falling through the floor, then IBM would be a great candidate, especially with so much of the S&P above a trailing P/E of 20 (roughly half).


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## MrMatt (Dec 21, 2011)

I think that my BRK.B holdings have me covered. 

Really if you want to follow Buffet, just buy BRK. His stock buys are okay, but the complete companies and special deals he makes are what really brings in the cash IMO.

I've overexposed to tech anyway, even if I sell out some GOOG.


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## Just a Guy (Mar 27, 2012)

PatInTheHat said:


> This is a ton of info. Any chance you can offer some cliff notes?


Basically, IBM is sacrificing service and playing up on its name to preserve its stock price by any means, long term the company is in real trouble. For example: If it costs money to actually honor their contracts, not doing the work is a sound cost cutting measure. 


Robert, his pen name, is very connected within the tech industry. This guy isn't a talking head, but that's not to say he isn't wrong once in a while. That being said, a lot of disgruntled employes tend to talk to him.


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## james4beach (Nov 15, 2012)

MrMatt said:


> I think that my BRK.B holdings have me covered.


Same here. And it's the insurance company that brings in all the cash. The media really hypes up his stock picks (because let's face it, stocks sound cool and everyone aspires to be a stock picker) but the stock picks are just a small part of Berkshire. It's the fully owned businesses and especially the insurance companies that make Buffett and Berkshire what it is


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