For one, like other Buffett investments such as Burlington Northern Santa Fe Railroad, he is looking at IBM with a long-term view. In the 100 years since its founding, IBM has survived countless market environments, cementing its place within not only the tech sector, but the broader global business world. Buffett praised the firm for its ability to lay out its plans for the future. In addition, Buffett noted that IBM has enjoyed standout stability compared to other tech household names.
Given the investor's very specific tastes in regards to technology, the best way for individuals to mimic his newest purchases is through shares of IBM and Intel, or through Berkshire Hathaway stock. The iShares Dow Jones Technology Sector Index Fund (IWY) sets aside over 15% of its portfolio to IBM and Intel. However, the fund's index is also heavily focused on Apple (AAPL - Get Report), Google (GOOG - Get Report), and other tech names Buffett will likely still express hesitance towards in the future.
With his massive investment in IBM, and interest in Intel, it appears as though Buffett has gotten over some of his technophobia. Do you think that the additional technology bets will be in the investor's future? Feel free to leave a comment in the space below.
Written by Don Dion in Williamstown, Mass.