Berkshire Hathaway and IBM by mraziz

I have always been long Warren Buffett and Charlie Munger. I respect all the work they have done and the basis of this work, the virtues they carry and the unmatched persistence on top of all of that. They invest and they invest big when the price tag is right; this is the philosophy I'm carrying and implementing for my stock market investments, one that I deem fundamental to how I invest money.

While I can't wear their hat with the context of Berkshire Hathaway, I'm quite certain of their investments paying off at a decade-level period. However, one odd investment I currently see in Berkshire Hathaway's portfolio is IBM. I'm a technology guy and I understand technology - arguably more than many others - so I'm not your average joe when it comes to technology. I'm better than Warren Buffett himself when it comes to technology, he and Munger have always mentioned how they always invest within their circle of competence and technology is obviously not in that circle, at least not until recently. Looking at IBM in relation to the tech industry I can see a handful number of other giants that are way better candidates of Buffett's and Munger's investment philosophy. Sure, IBM has probably the longest history among its peers, and a solid one if you don't zoom in on their timeline, but when it comes to innovation I believe it has become somewhat mediocre. They follow trends, and they come in late to the show.

The other factor is how much Berkshire is investing into IBM, approximately $13b or %8 of IBM at the time of writing this post. This shows how much they are interested on the company and how much they believe in its future returns. Now don't get me wrong, I'm not saying this is a bad investment or IBM is going to hell or anything of that sort, nor am I saying this is not going to profitable for Berkshire; I'm saying that there are far better investments when it comes to the technology sector that would reward Berkshire in a far greater way. Google, for instance, is a perfect candidate for a heavy investment coming from Berkshire Hathaway. It has revolutionized technology and continues to do so, it has a great record with a potential of even a greater record. When it comes to the mote Warren and Charlie usually look for, it has some of the greatest motes making them exceptionally unique among their peers (work environment, management, horizontal business growth, etc.).

Now I'm sure they know things, a lot of things about IBM that I nor the public know of, otherwise they wouldn't have went that big into IBM. After all, being a billionaire gives that kind of advantage, and boy that is one hell of an advantage. Nonetheless, I still think over the course of a couple of decades, Google is a far more suitable investment in the technology sector than IBM.