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TheStreet Open House

Buffett's Big Play for Tech

Stocks in this article: BRK.AIBMINTCAAPLGOOGIYW

NEW YORK ( TheStreet) -- Last week, investors learned that Warren Buffett had put a great deal of money to work over the most recent quarter. In a recent article , I pointed out that based on the limited information provided in the available filing, the investor appeared to have been taking steps to expand the reach of his legendary investment portfolio. This proved to be true in a big way.

Billionaire investor Warren Buffett shocked fans this week announcing that, over the course of the three-month period ended Sept. 30, IBM (IBM) had been one of the companies to receive a Buffett-blessing.

His bet is big. According to his most recent 13f filing, his stake in the technology goliath is valued at over $10 billion, making the firm the second largest Berkshire Hathaway (BRK.A) holding behind beverage giant Coca-Cola (KO). Buffett's empire currently controls a 5.5% stake of Big Blue, which many have noted may make Berkshire the company's single largest shareholder.

Warren Buffett

Buffett's company's tech appetite didn't stop there, however. In addition to his massive IBM investment, the Berkshire Hathaway filing also indicated that the firm took steps into in semiconductor giant Intel (INTC) as well. Over the three-month period, Buffett's firm acquired over 9 million shares of chip maker, bringing the total value of the investment to nearly $200 million.

A smaller investment such as this can likely be attributed to Todd Combs, Buffett's new hire.

>>View Warren Buffett's Portfolio

As many have noted, this pair of moves is notably uncharacteristic for the Nebraska native who, over the course of his illustrious multi-decade career, has consistently avoided the technology sector. Instead, Buffett has opted to build his wealth investing in businesses that many would consider "boring." Though lacking in flashiness, this strategy has paid off; by sticking to names like Coca-Cola and See's Candy, the investor has managed to avoid getting caught up in volatile market fads.

For example, at the start of the new millennium, Buffett's decision to avoid tech helped him successfully weather the collapse of the dot-com bubble.

Given his previous disinterest in tech, it is understandable that many would find Buffett's IBM investment surprising. In comments made regarding his new big ticket purchase, however, the investor has laid out the qualities that initally drew him to the firm.

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