Warren Buffett’s Berkshire Hathaway has bought $10.7 billion worth of common stock in IBM Corp. (NYSE: IBM) this year. Berkshire now owns 5.4% of Big Blue, but the 81-year-old billionaire said in a CNBC interview Monday that he doesn’t intend to buy any more shares.
Buffett started to buy IBM shares in March and bought a total of 64 million shares at an average price of $170. He said he decided to start buying IBM stock after its 2010 annual report.
Buffett told CNBC that he thinks IBM has done an “incredible job executing its long-term strategy, has an excellent road map for the future, and respects its shareholders by being honest with them and doing big stock buybacks.”
Recently, IBM named Virginia Rometty its new president and CEO. On Jan. 1, she will succeed Samuel Palmisano, who has been CEO since 2002. He will remain as chairman of the board, a position he has held since 2003.
IBM reported third-quarter revenue of $26.2 billion, up 8% from the same quarter last year. The company has raised its expectations for full-year 2011 GAAP diluted earnings per share to at least $12.95 from at least $12.87; and operating (non-GAAP) diluted earnings per share to at least $13.35 from at least $13.25. The 2011 operating (non-GAAP) earnings exclude $0.40 per share of charges for amortization of purchased intangible assets, other acquisition-related charges, and retirement-related items driven by changes to plan assets and liabilities primarily related to market performance.
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