does warren buffett own ibm stock? Answered
Does Warren Buffett own IBM stock?
Does Warren Buffett own IBM stock? Short answer up front: Berkshire Hathaway — the company led by Warren Buffett — built a large IBM position beginning in 2011 but reduced and largely exited that stake by the late 2010s. Small, indirect holdings tied to Berkshire subsidiaries have been reported in later years, so whether Buffett or Berkshire “own” IBM depends on whether you mean Buffett personally, Berkshire Hathaway directly, or indirect subsidiary portfolios.
This article explains the full timeline, the reasons Buffett bought IBM, how the stake was disclosed, why Berkshire sold, the role of subsidiaries, and how to check the most up-to-date ownership data yourself.
As of the dates cited below, reporting relied on public filings and contemporaneous news coverage. For a definitive, current answer, consult the latest Berkshire Hathaway 13F filings and subsidiary disclosures.
Background — Warren Buffett, Berkshire Hathaway, and technology investing
Warren Buffett is best known for a value-oriented investment philosophy that favors companies with durable competitive advantages, predictable earnings, strong free cash flow, and skilled capital allocators. Historically, Buffett expressed caution about complex, fast-moving technology businesses because they can change quickly and their competitive moats are sometimes fragile.
Because of that long-standing caution, Buffett’s decision to buy a large position in a major technology-facing company such as IBM drew wide attention when it became public in 2011. The IBM investment marked a notable shift in Berkshire’s approach to certain types of business models, even though Buffett framed the IBM purchase as an investment in a business with dependable customer relationships and recurring enterprise revenue rather than a bet on “consumer tech.”
Berkshire’s 2011 investment in IBM
Berkshire Hathaway began accumulating IBM shares in 2011. Contemporary reporting and subsequent SEC filings indicated the position was substantial: Berkshire spent roughly $10.7 billion to acquire about 64 million IBM shares, representing approximately a 5.4–5.5% stake in IBM at the time of the disclosure. That scale of ownership placed Berkshire among IBM’s largest institutional holders in that period.
Acquisition details and filings
The size and timing of the stake were revealed through a combination of public comments and SEC-required disclosures. Institutional holdings are typically summarized in quarterly 13F filings that report long equity positions held by large institutions. In addition, Buffett’s public remarks and Berkshire’s annual and shareholder communications gave context to the transaction.
As of the contemporaneous reporting, the reported figures of ~$10.7 billion, ~64 million shares, and a roughly 5.4–5.5% stake came from news outlets that reviewed Berkshire’s filings and statements. For precise numbers and exact filing dates, consult the cited 13F filings and Berkshire Hathaway shareholder materials from 2011 and subsequent quarters.
Rationale for the investment
Buffett publicly explained his reasons for buying IBM in 2011 with an emphasis on business durability and customer relationships rather than a pure technology thesis. His key points included:
- Client “stickiness”: Buffett highlighted IBM’s longstanding enterprise relationships and the high switching costs for large corporate customers that rely on IBM services and infrastructure.
- Cash return plans: Buffett noted IBM’s capacity to return cash to shareholders via dividends and buybacks — a factor he often values when assessing capital allocation.
- Management and long-term contracts: Buffett viewed IBM’s existing business lines and management plans as compatible with a long-term, buy-and-hold style investment.
Those rationales reflect Buffett’s preference for businesses with predictable cash flows and defensible positions, even if the underlying sector (technology and IT services) historically fell outside his comfort zone.
Performance and divestment — why Berkshire sold
Over the life of the IBM position, the investment did not meet Berkshire’s expectations. IBM faced structural challenges in the 2010s as parts of its business shifted, and the stock underperformed other parts of Berkshire’s portfolio. Investor commentary and Buffett himself later characterized the holding as an investment that did not work out as hoped.
Berkshire began reducing the IBM stake in the mid-2010s. Reported sell-downs took place across several quarters, and by reporting periods covering 2017–2018 Berkshire had largely exited its large, directly reported IBM position. The sell-off timeline and the degree of reduction were evident in successive 13F filings and discussed widely in financial press coverage.
Buffett’s reflections and lessons
Buffett and many analysts have referred to the IBM episode as a learning experience. Buffett acknowledged that IBM’s business dynamics and competitive pressures made the investment more difficult than anticipated. The experience influenced Berkshire’s later approach to certain technology-related opportunities, including a markedly different and highly successful stake in Apple, where Berkshire emphasized a consumer-facing franchise and strong cash flows.
Indirect/subsidiary ownership (NEAM and others)
Answering “does Warren Buffett own IBM stock” requires nuance because Berkshire’s holdings can appear in multiple places:
- Direct holdings reported under Berkshire Hathaway’s name in 13F filings.
- Indirect holdings managed by Berkshire-owned subsidiaries or investment managers, which may report some holdings separately or under their own reporting structure.
New England Asset Management (NEAM) and other Berkshire subsidiaries or affiliated asset managers have at times been reported to hold small numbers of IBM shares. These subsidiary holdings are typically tiny relative to Berkshire’s earlier, large, directly held stake but can create ambiguity when asking whether “Buffett/Berkshire” owns IBM.
How subsidiary holdings are reported
SEC reporting rules require institutions and certain advisors to file 13F forms that list their long equity holdings. Berkshire’s consolidated 13F typically lists major positions held in Berkshire’s own portfolio. Subsidiaries or outside managers that are separately registered investment advisors may file their own 13F filings listing the securities they manage. As a result, a small IBM position held by a Berkshire subsidiary may appear on a subsidiary’s 13F rather than Berkshire’s consolidated list.
Because of this reporting structure, a search of public filings must include both Berkshire’s main filings and those of subsidiaries to capture the full picture.
Current status (reporting-dependent)
The exact, up-to-the-minute answer to “does Warren Buffett own IBM stock” depends on the latest public filings and institutional-holder reports. Historically, Berkshire sold its large IBM position, and as of late-2010s filings the direct, large stake was gone. However, over time small, indirect positions held by subsidiaries or investment managers affiliated with Berkshire have been reported in various quarters.
For the most current status, consult the following ironclad sources:
- Berkshire Hathaway’s most recent Form 13F (quarterly filing) to see direct long equity positions reported under its name.
- SEC filings of subsidiaries or investment advisors affiliated with Berkshire, which may separately report smaller positions.
- Institutional-holder pages maintained by major financial data providers that aggregate 13F and shareholder records.
As of the most widely cited public filings covering 2017–2018, Berkshire had substantially reduced and effectively exited the large IBM position it built in 2011. Later small holdings noted in subsidiary filings are not equivalent to the earlier, direct, multibillion-dollar stake.
Market and historical impact
The IBM episode is often cited as a notable deviation from Buffett’s historical reluctance to own large technology companies. It stands as a high-profile example of a large institutional bet that did not play out as planned and underscores several broader lessons:
- Even highly experienced investors can misjudge structural shifts in a business or industry.
- Large positions in complex industries raise governance and timing challenges.
- The episode shaped investor thinking about how Berkshire evaluates technology-related opportunities going forward.
Because Buffett is a highly visible investor, Berkshire’s IBM purchase and eventual divestment became a widely discussed case study in portfolio construction, corporate transition risk, and the limits of forecasting business-model durability.
Frequently asked questions
Q: Did Buffett personally buy IBM?
A: Investments reported in filings were made through Berkshire Hathaway, the company Buffett leads. Public disclosures reflect Berkshire’s purchases rather than a personal brokerage account held by Buffett.
Q: Does Berkshire still own IBM?
A: Berkshire sold its large, directly reported IBM stake; later years have shown small, indirect subsidiary holdings in some reporting periods. For a definitive answer at any moment, check the latest 13F and subsidiary filings.
Q: When did Berkshire buy and sell IBM?
A: Berkshire began building its IBM position in 2011; reported sell-downs occurred across the mid-2010s, and filings covering 2017–2018 show the large direct position largely gone.
Q: Was the IBM investment considered a mistake?
A: Buffett and many commentators later described the IBM investment as an error or learning experience, noting that the holding underperformed expectations.
Q: Where can I verify current ownership data?
A: Verify using Berkshire Hathaway’s latest 13F filings, SEC repositories, and institutional-holder aggregators. Also review subsidiary 13F filings for indirect positions.
References and further reading
- Berkshire Hathaway Form 13F filings (quarterly) — primary source for direct institutional holdings. Check the filing dates associated with the quarters in question for exact snapshots.
- Public Berkshire Hathaway shareholder letters and annual reports — for Buffett’s commentary and context.
- Contemporary news coverage of the 2011 purchase (major financial press coverage summarized reporting at the time).
- Retrospective analyses and investor commentary on Berkshire’s IBM investment and subsequent divestment.
Example references to consult (search for these sources and dates in public archives):
- As of the 2011 reporting period, multiple outlets covered Berkshire’s initial IBM purchases and reported figures for dollars spent and shares acquired. (Check Berkshire 13F for the precise entry quarter.)
- As of reporting periods covering 2017–2018, financial press and 13F filings documented the sell-down and near-exit of the IBM position.
Note: Reporter names, article titles, and exact publication dates can be located through public archives and the SEC’s EDGAR system. For the clearest, verified snapshot of ownership at any point in time, consult the appropriate quarter’s 13F.
See also
- Berkshire Hathaway investment strategy
- Warren Buffett’s notable investments (for example, Apple as a later technology-related holding)
- SEC Form 13F filing basics and how to read them
- New England Asset Management (NEAM) and reporting for subsidiaries
How to check ownership now — a short how-to
- Locate Berkshire Hathaway’s most recent Form 13F (quarterly) on the SEC EDGAR database and search the holdings list for IBM.
- Search for 13F filings from Berkshire-owned subsidiaries (if any are separately registered investment advisors) to capture indirect holdings.
- Review institutional holder reports on major financial data terminals or aggregator pages that list institutional ownership snapshots.
If you want a quick, user-friendly place to monitor institutional ownership changes, consider using a reputable data provider or the SEC’s public filing search. When exploring trading or custody solutions for equities or digital assets, Bitget offers trading and custody products, along with educational resources and Bitget Wallet for self‑custody of private keys.
Further explore Bitget’s learning center to understand reporting, filings, and institutional ownership concepts in more depth. Remember that this article is informational and not investment advice.
Final notes and next steps
The answer to "does Warren Buffett own IBM stock" depends on timing and which vehicle you mean: Berkshire Hathaway’s direct portfolio, Warren Buffett personally, or Berkshire subsidiaries. Berkshire did build a large IBM stake in 2011 (roughly $10.7 billion for about 64 million shares, per contemporaneous reporting) and largely sold that stake by the late 2010s. Small indirect holdings have appeared in subsidiary filings at times. For a definitive, current snapshot, consult the latest 13F and SEC filings.
Want to keep track of institutional holdings and learn how to read filings? Explore Bitget’s educational resources and Bitget Wallet to manage assets securely while you build your knowledge of markets and reporting.
Disclaimer: This article presents factual, historical, and procedural information. It is not investment advice. Always consult official filings and a licensed advisor for investment decisions.
