IBM Tumbles To New 5 Year Lows After Buffett Admits Huge Loss

We’re gonna need a bigger buyback… As if “old tech” IBM was not in enough trouble, the worrying admission from Buffett’s Berkshire Hathaway’s earnings of around $2 billion (though careful to note he is not about to sell) has seemingly prompted further weakness. IBM is down almost 2% to fresh May 2010 lows…

As Berkshire Hathaway detailked…

As of September 30, 2015 and December 31, 2014, we concluded that there were no unrealized losses that were other than temporary. Our conclusions were based on: (a) our ability and intent to hold the securities to recovery; (b) our assessment that the underlying business and financial condition of each of these issuers was favorable; (c) our opinion that the relative price declines were not significant; and (d) our belief that market prices will increase to and exceed our cost.

As of September 30, 2015 and December 31, 2014, unrealized losses on equity securities in a continuous unrealized loss position for more than twelve consecutive months were $204 million and $65 million, respectively. Unrealized losses at September 30, 2015 included approximately $2.0 billion related to our investment in IBM common stock, which represented 15% of our cost. IBM continues to be profitable and generate significant cash flows.

We currently have no intention of disposing of our investment in IBM common stock. We expect that the fair value of our investment in IBM common stock will recover and ultimately exceed our cost.

Fresh 5 year lows..