Tech-Shy Warren Buffet Places Big $10.7B USD Bet on IBM

Megainvestor is known for avoid tech companies, but big blue's diverse business has won him over

Warren Buffett, 81, built his billions in fortune on a principle of only investing in firms he believed would sustain a same strong business model for 15 to 20 years into the future. As you might guess, this means that Buffet is a notorious detractor on tech ventures -- particularly the internet startup.

I. Buffett Considers IBM a Safe Pic

In a 1998 talk he famously remarked, "I look for businesses in which I think I can predict what they’re going to look like in ten or 15 or 20 years… Take Wrigley’s chewing gum. I don’t think the Internet is going to change how people are going to chew gum… I don’t think it will change whether people shave or how they shave."

But it looks like the world's third richest man has finally picked a horse in the technology stock race -- and no, it's not Apple, Inc. (AAPL). Mr. Buffett eschewed the fruity giant that's had its share of ups and downs for a far older firm -- International Business Machines, Inc. (IBM).

Currently in its 100th year, the information technology, cloud computing, hardware, and software giant now counts Mr. Buffett as perhaps its biggest investor. Mr. Buffett has sunk over a sixth of his Berkshire Hathaway, Inc. (BRK.A) fortune into IBM. His $10.7B dive is worth a 5.4 percent stake.
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