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Post By bad529bye13
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Buffett set to take mega-million dollar beating on IBM
Nobody is taking a bigger beating on the slide in IBM (IBM) shares than Warren Buffett.
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QUOTES IN THE ARTICLE
International Business Machines Corp
IBM
▼161.51-8.57-5.04%
Berkshire Hathaway Inc
BRK.A
▲246,320.00+560.00+0.23%
The billionaire Oracle of Omaha is the largest shareholder — through his Berkshire Hathaway (BRK.A) — of the information technology behemoth, whose stock has been sliding since it recorded its 20th-straight quarterly revenue decline after the closing bell Tuesday.
With the loss of about $8 a share in premarket trading Wednesday, Buffett's losses are around $650 million.
Of course, that's a paper calculation and could change depending on what Berkshire has done since the last regulatory filing period. However, the losses are still substantial.
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Berkshire Hathaway's 81.2 million shares represent about 8.6 percent of total shares outstanding, according to CapitalIQ.
IBM actually topped Wall Street expectations on the bottom line, earning $2.38 a share against estimates of $2.35. However, top-line revenue fell short at $18.16 billion compared with the $18.39 billion anticipated according to Thomson Reuters estimates.
"The portfolio will grow. I am confident that the IBM company will grow again," IBM Chief Financial Officer Martin Schroeter told CNBC.
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