ARMONK, N.Y. ( TheStreet) -- Warren Buffett's decision to grab $10.7 billion worth of IBM (IBM) was made easier by Big Blue's history of strong leadership, according to the Berkshire Hathaway (BRK.B) CEO.
The tech bellwether recently announced that its CEO Sam Palmisano will step down at year-end, to be replaced by sales chief Virginia Rometty. Palmisano, who took IBM's reins from the popular Lou Gerstner in 2002, successfully guided the tech giant through the economic downturn, and helped architect its push toward high-margin areas areas such as software and services.
|IBM CEO Sam Palmisano will step down next year.|
Buffett cited Palmisano and Gerstner's efforts during an interview with CNBC on Monday, adding that he's confident of Rometty's ability to continue their legacy."They are batting 1.000 with the last two CEOs they have come up with," he explained. "I don't know
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV