Warren Buffett disclosed a $10.744 billion position in IBM today. That’s 57,348,984 shares of a stock that’s trading north of $185. It took Warren Buffett three quarters to built that position. He probably got the idea when IBM plunged below $155 in mid March. He could only buy 4,517,774 shares during first quarter.
He kept buying during second quarter. Warren Buffett bought another 20 million shares of IBM during second quarter. He probably paid around $166 per share at the time. He bought 32 million shares during the third quarter. There were wild swings in IBM’s stock price during the third quarter. However, Buffett probably paid around $170 per share on the average.
Overall Buffett already made around $1 billion from his IBM stake. We think Microsoft is a better investment than IBM but Buffett ruled out that investment because of his close relationship with Bill Gates. Intel is another alternative which was trading at a significant discount to IBM. Buffett passed that one as well but his proteges initiated a $200 million position in INTC.