Despite the potential that now exists in the company's move toward the Internet of Things, Intel remains a haven for bears who can't or won't forgive the company's management for having missed the growth opportunity in mobile. But that's in the past. Investing is about the future. And no one knows that better than Warren Buffett.
It has been two years since Buffett's Berkshire Hathaway (BRK-A)BRK-A sent shockwaves through the tech world he dumped his stake in Intel, shunning his buy-and-hold strategy.
Through August 2011, Berkshire had accumulated 5.66 million shares in Intel for an average price of $22.05. Then two months later, Buffett's company added 5.84 million shares for an average price of $21.46.
It was then learned on May 8, 2012 that Berkshire sold all of its 11.5 million shares for an average price of $27.25, netting roughly $63 million. Not bad for nine months' worth of work.
It was not unusual for Buffett to reshuffle his portfolio. That same year, investors learned that Berkshire cut its stake in Johnson & Johnson (JNJ)JNJ and Kraft Foods (KRFT)KRFT. It was a clear lack of confidence in Intel, nonetheless. And for that matter, a well-timed move.
After Buffett's exit, Intel's stock lost roughly 30% of its value during the next six months, falling as low as $19.11 and closing the year at $19.47. Intel's stock has never been the same since, which is precisely why Buffett might consider buying again.