IBM First Technology Company Invested by Berkshire Hathaway

IBM marked a pivotal point in investment history when it became the first technology company to receive investment from Berkshire Hathaway, the holding company led by Warren Buffett. The initial investment involved the purchase of 64 million shares, amounting to approximately $10.5 billion. This move was significant as it represented Buffett's entry into the technology sector, which he had previously approached with caution. Over the years, Buffett's investment strategy regarding IBM evolved. He increased his holdings in the company, reflecting a belief in its long-term potential. However, this optimism waned, and by the end of a specified period, he had drastically reduced his stake by 94.5%, leaving him with only 2.05 million shares. Ultimately, Buffett divested entirely from IBM, signaling a shift in his investment focus and raising questions about the company's performance and future prospects in the rapidly changing technology landscape.