Warren Buffett's Vote of Confidence in IBM

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This month, Warren Buffett's Berkshire Hathaway holding company purchased a $10.7 billion stake in IBM. This was an unusual move for Buffett, famously known for avoiding the technology sector in his immensely successful half century of shrewd and forward-looking investments. The Oracle of Omaha had been secretly investing in IBM since last March under the code name "Harold" (a play on the reference to "HAL" in the movie 2001: A Space Odyssey," which was a shift backward of one letter in the alphabet from "IBM"). Buffett may be wary of technology companies, but he is known to do his homework thoroughly. And, along with looking at IBM's work with the world's largest companies and governments, couldn't miss the strength and growth prospects of IBM's mainframe systems lines.

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