Wednesday, November 18, 2015

Adding to IBM

It was reported on Berkshire Hathaway's 13F filing that Warren Buffet added 1.53 million shares since June. That makes Big Blue one of his Top 5 holdings.  I added to the position yesterday based on that information, and the stock is in oversold territory on the weekly chart. Plus with the stock yielding near 4% at this level investors are getting paid to wait this one out. IBM's Watson system is going to be a game changer and they've only began to realize it's potential. I think at this price level we have a lot of bad news baked in until revenues start to turn.  IBM was showing solid percentage gains on it's strategic imperatives according to their last earnings report. I think the tide will be turning for Big Blue in late 2016 or 2017.

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