Berkshire Hathaway Inc (NYSE:BRK.A) Investment Of $400 To International Business Machines Corp (NYSE:IBM) Shocks Many

Berkshire Hathaway Inc (NYSE:BRK.A)‘s CEO whose stock has the largest number of followers in the market is at it again and this time with a bang. Unlike what was thought by many, the billionaire investor Warren Buffett is still on point in playing the investment game. His investment to International Business Machines Corp (NYSE:IBM) through Berkshire Hathaway which is Buffett’s Insurance Company stood at roughly $400

Mind you this was within the first quarter, a move that caught many by surprise. Using IBM’s average price, the cost per share stood at $160 in the first quarter. Hence, as the first quarter was closing, Berkshire was raking close to 79.5 million shares. The net worth of this is nearly $13 billion.

However, Buffett’s move has been questioned by many bearing in mind that IBM’s shares were at 14% as at last year that was considered to be relatively little. The questioning has been countered by Charlie Munger, who is one of Buffett’s long-time investment partners.

Munger has explained that a majority of Berkshire’s investments have previously undergone reversals. Nevertheless, word has it that IBM has been making use of its cash to get back its stock.

In another turn of events, Berkshire Hathaway Inc (NYSE:BRK.A) has revealed having sold its defense contractor General Dynamics Corp shares that had a market value of close to $269 million at the end of 2012. This may have been a drop in the ocean for Berkshire considering that it owns multibillion-dollar companies locally and internationally.

With the global position of Berkshire in terms of its investments, and which was so demanding, Todd Combs and Ted Weschler were hired as portfolio managers. They both run the company’s investment portfolio event though speculations have it that they are likely to take over after Buffet’s retirement.

There seems to be a lot that is happening behind the scenes as a far as Berkshire’s investments are concerned. For example, it is said that at least for the first time, Buffett and his investment managers have combined efforts and agreed to buy more stock and sell less. We can only wait to see what will unfold next.

Scott Coper

Scott Coper

Coper graduated from the University of Chicagi with majors in political science and journalism.