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Media

Buffett bets on IBM with 5% stake

Warren Buffett's Berkshire Hathaway (NYSE:BRKA) has bought $10.7 billion worth of shares in information technology giant IBM (NYSE:IBM) since March.

Buffett told CNBC that the investment amounts to about 64 million shares, the equivalent of a 5.5 percent stake,

The investment would make Berkshire Hathaway IBM's largest or second-largest shareholder after investment advisory group State Street which holds more than 64 million shares.

Known as the "Sage of Omaha" for his investing skills, the 81-year-old Buffett told CNBC that Berkshire had paid an average price of $170 a share, 10 percent lower than last Friday's closing price of $187.38.

The shares were up 1.3 percent in opening trade Monday; Berkshire's most widely traded "B" shares fell 0.3 percent.

Buffett said in the TV interview that Berkshire had finished its IBM spree and that he did not intend to buy more of the company.

"I wouldn't be talking about it if I did."

Buffett praised IBM, which celebrated its 100th anniversary in June, for having a strong plan for the future, saying: "They've done all kinds of things right."

Buffett also said Berkshire had increased its holdings in a leading US bank, Wells Fargo (NYSE:WFC), but did not give any figures.

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