Warren Buffett talks about Wells Fargo and IBM

Warren Buffett talks about Wells Fargo and IBM

Billionaire investor Warren Buffett’s Berkshire Hathaway has sold its holding in technology major IBM. Buffett’s decision to reduce his exposure to IBM has led to quick decline in valuations of the technology major. Buffett cited major competition in technology sector as a challenge for IBM in future. At the end of year 2016, Berkshire Hathaway owned 81 million shares of IBM and the company has sold nearly 35 percent of its holding during year 2017.

While talking to CNBC, Buffett said, “I don't value IBM the same way that I did 6 years ago when I started buying... I've revalued it somewhat downward. When it got above $180 we actually sold a reasonable amount of stock.”

Buffett also condemned role of Wells Fargo management in dealing with bogus accounts issue. Currently, Berkshire owns 10 percent stake worth $27 billion in Wells Fargo. Buffett said that Wells Fargo management gave too much of autonomy to its sales employees for meeting their goals.

"If there's a major problem, the CEO will get wind of it. At that moment, that's the key to everything. The CEO has to act," Buffett said. "The main problem was they didn't act."

As per Forbes report, Berkshire Hathaway stake in 43 companies has increased in its valuation by $16 billion since the last Berkshire meeting. Out of 43 companies, only 7 have witnessed a small decline in valuations. Rest of the companies have made smart gains over the period. The biggest winner in Berkshire’s portfolio since the last meeting in Apple. The stock has gone up by nearly 59 percent over the period under consideration.


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