- Associated Press - Monday, November 14, 2011

OMAHA, NEB. (AP) - Warren Buffett’s company revealed new stakes in Intel, DirecTV, General Dynamics and CVS Caremark to accompany Berkshire Hathaway Inc.’s headline-making investment in IBM.

Berkshire disclosed the new investments Monday in a quarterly update it filed on its U.S. stock holdings. Buffett announced Berkshire’s purchase of more than 5 percent of IBM’s stock during an earlier interview.

Berkshire estimates that each of the new investments, besides IBM, were worth less than $200 million at the end of September. That dollar figure suggests those investments were made by Berkshire’s new investment manager Todd Combs, who manages between $1 billion and $3 billion.

But it’s not clear who picked the investments because the filing doesn’t differentiate between investments Berkshire makes, investments any of roughly 80 subsidiaries make, or investments made by Buffett himself.


THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

Investor Warren Buffett says his company bought about $10.7 billion worth of IBM stock this year, giving it a stake of more than 5 percent in the technology company.

Buffett revealed the investment during an interview on CNBC on Monday. Buffett’s company, Berkshire Hathaway Inc., planned to file a full quarterly update on its U.S. stock portfolio Monday afternoon.

Buffett has long refused to invest in high-tech companies because he has said it’s too difficult to predict which technology businesses will prosper in the long run.

But he said he recently realized his view of IBM was wrong based on what he read in the company’s annual reports and what he learned by talking to information-technology departments at Berkshire subsidiaries. He said he should have realized years sooner that hardware is no longer the heart of IBM’s business.

“Now they’re very much a services company, and they’re very intertwined with their customers,” Buffett said. And he said IBM’s customers are reluctant to change once they start working with IBM.

So Berkshire has bought about 64 million shares since March, or about 5.5 percent of IBM. Buffett says he believes IBM has a sound plan for the future.

Andy Kilpatrick, the stockbroker-author of “Of Permanent Value, the Story of Warren Buffett,” said it’s surprising to see Buffett invest in a high-tech company, but the investment appears to an example of Buffett spotting something in plain sight that he had previously overlooked.

“I don’t think it moves things very far from what he’s always done,” Kilpatrick said.

IBM joins several other American business icons in Berkshire’s stock portfolio. Buffett’s company already holds stakes in Coca-Cola Co., American Express Co., Wells Fargo & Co., among others.

IBM officials declined to comment Monday on Buffett’s investment.

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