Warren Buffett's 'Confidential Treatment' Yields Huge IBM Stake (BRK-A, IBM, BAC)

Apps & Software

Published: November 14, 2011 8:25 am

Last Updated: November 14, 2011 5:02 pm

Berkshire Hathaway Inc. (NYSE: BRK-A) is set to release its third quarter’s full investment holdings very soon in an SEC filing. An unusual pre-release interview was given by Warren Buffett to CNBC this morning and the old man disclosed something that is a first as far as breaking news.

Buffett has always avoided technology companies but the more away from PCs to services and the contracts that follow them has brought Warren Buffett to International Business Machines Corporation (NYSE: IBM). Buffett had a large position of undisclosed securities in his last full holdings and now we know at least a part of that was.

Buffett and Berkshire Hathaway now own about 64 million shares of IBM that have been added since March. This represents a 5.6% stake in the company and Buffett said that he spent $10.5 to $10.6 billion in building the stake. If he is right on his number then his average cost is just north of $165.00 per share but he noted closer to $170.00 on average in his interview this morning on CNBC.

We recently gave a list of shares we think that Buffett could have added to during the recent weakness, but IBM was not among them. This is a serious change of history for Buffett. Buffett also defended his purchase of Bank of America Corporation (NYSE: BAC) shares saying he thinks that will be a good payoff in five years,

IBM shares are trading up nearly 1% at $189.00 and the year-high and all-time high is $190.53.

JON C. OGG

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