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IBM Tumbles To New 5 Year Lows After Warren Buffett Admits Huge Loss
Zero Hedge ^ | 11/09/2015 | Tyler Durden

Posted on 11/09/2015 9:39:29 AM PST by SeekAndFind

We're gonna need a bigger buyback... As if "old tech" IBM was not in enough trouble, the worrying admission from Buffett's Berkshire Hathaway's earnings of around $2 billion (though careful to note he is not about to sell) has seemingly prompted further weakness. IBM is down almost 2% to fresh May 2010 lows...


 

As Berkshire Hathaway detailked...

As of September 30, 2015 and December 31, 2014, we concluded that there were no unrealized losses that were other than temporary. Our conclusions were based on: (a) our ability and intent to hold the securities to recovery; (b) our assessment that the underlying business and financial condition of each of these issuers was favorable; (c) our opinion that the relative price declines were not significant; and (d) our belief that market prices will increase to and exceed our cost.

 

As of September 30, 2015 and December 31, 2014, unrealized losses on equity securities in a continuous unrealized loss position for more than twelve consecutive months were $204 million and $65 million, respectively. Unrealized losses at September 30, 2015 included approximately $2.0 billion related to our investment in IBM common stock, which represented 15% of our cost. IBM continues to be profitable and generate significant cash flows.  

 

We currently have no intention of disposing of our investment in IBM common stock. We expect that the fair value of our investment in IBM common stock will recover and ultimately exceed our cost.

Fresh 5 year lows..

 

It seems someone is fishing fro Buffett's pain point.



TOPICS: Business/Economy; Computers/Internet
KEYWORDS: ibm; warrenbuffet

1 posted on 11/09/2015 9:39:30 AM PST by SeekAndFind
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To: SeekAndFind

WTF I just saw a story Friday that said Buffet’s profits were WAY up????


2 posted on 11/09/2015 9:55:46 AM PST by Cyman
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To: Cyman

http://www.wsj.com/articles/berkshire-hathaways-profit-surges-on-big-investment-gain-1446845372


3 posted on 11/09/2015 9:56:50 AM PST by Cyman
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To: SeekAndFind

“It seems someone is fishing for Buffett’s pain point.”

Based on Tyler’s continued shorting of the markets for the past few years I suspect Buffett’s ability to withstand pain is a little higher than Tyler’s . . .

Although I agree that IBM is not the company Warren thinks it is. Can’t keep losing revenue without earnings eventually following suit.


4 posted on 11/09/2015 9:58:19 AM PST by LRoggy (Peter's Son's Business)
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To: SeekAndFind

Don’t worry, Watson will save them.


5 posted on 11/09/2015 10:07:01 AM PST by Steely Tom (Vote GOP: A Slower Handbasket)
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To: SeekAndFind

Maybe Carly can turn IBM around!


6 posted on 11/09/2015 11:02:44 AM PST by Cowboy Bob (With Trump & Cruz, America can't lose!)
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To: SeekAndFind
IBM has shot themselves right in the foot. They have done everything they can to ship manufacturing overseas. And have thought that they were going to compete in services using H1B labor.

I work on IBM machines and I hope that it lasts 15 more years until I retire...

I hope.

7 posted on 11/09/2015 5:52:34 PM PST by ColdSteelTalon (Light is fading to shadow, and casting its shroud over all we have known...)
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