3 Reasons Why IBM Investors Shouldn't Panic about Buffett's Sales
Warren Buffett once said his favorite holding period for stocks is, "forever." Therefore, it was likely jarring to shareholders that Buffett's Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) began selling off its stake in IBM (NYSE: IBM) earlier this year. We also just learned via Berkshire Hathaway's recent 13F filing that Buffett sold another 31% of the IBM stake this summer, trimming the position from 54 million to 37 million shares.
Since Berkshire has a huge amount of excess cash lying around, the fact that Buffett chose to sell could be a sign of deep trouble with IBM. However, while the sale is not exactly great news, I don't think current IBM shareholders should panic, either. Here's why.
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Source: Fool.com