Buffett Completely Out of IBM

Warren Buffett's investment in IBM has been a topic of interest among investors and analysts. Initially, Buffett increased his holdings in IBM, reflecting his belief in the company's potential for growth and innovation in the technology sector. However, by the end of 2017, Buffett had significantly reduced his stake in IBM by 94.5%, leaving him with only 2.05 million shares. This drastic reduction indicated a shift in Buffett's perspective on the company's future performance. By May 2018, he had completely divested from IBM, selling all his shares. This decision came amid a backdrop of declining revenues and net income for IBM, which had been experiencing challenges in adapting to the rapidly changing technology landscape. For instance, IBM's revenue peaked at $92.7 billion but saw a steady decline over the following years, dropping to $73.6 billion by 2020. The company's net income also fluctuated, with a notable decrease to $5.5 billion in 2020, raising concerns about its long-term viability and growth prospects. The workforce at IBM also saw a reduction, from nearly 380,000 employees to around 282,000, reflecting the company's restructuring efforts and the impact of automation and outsourcing on its operations. Buffett's exit from IBM serves as a case study on the importance of adapting investment strategies in response to changing market conditions and company performance.