Has Warren Buffet just gone techie ?
Yup, the man who said he doesn't buy technology companies because he does not understand them has finallly given up and purchased a share of IBM . You can also read about it here and here . The official claim for the change of mind is the change IBM has made from a large hardware company to a large services company. Even though we remember that Buffet has already stated that Berkshire can no longer get bargains, considering IBM's recent stock price, Mr. Buffet is buying at a peak. Technology stocks in general appear to be forming a nice little bubble of their own, I fear (not all, but too many, especially those living in the smart gadgets niche) and as P/Es are very misleading in the technology field, one can only assume Mr. Buffet and his assistants have been doing a deep and thorough research on IBM's business, and have probably also taken into account the company's proven ability to reinvent itself again and again over decades, while keeping the status of