In general, Warren Buffett is not a big fan of losing money, so dropping $1 billion on Monday morning before lunch certainly should not sit well.
This morning, shares of IBM dropped significantly on weak earnings results, and this cost Warren Buffett dearly. The stock price dropped by $15.05 at the opening bell, and as of June 30, according to recent SEC filings, Berkshire Hathaway owns around 70.2 million shares of the tech company.
Based on those figures, this decline will cost Berkshire Hathaway and Warren Buffett $1.06 billion. It may be a drop in the bucket for Berkshire Hathaway, but it’s still a noteworthy amount of money to lose.
Before a another weak earnings report last April, Buffett mentioned on CNBC that he hadn’t “soured” on IBM, and even mentioned that he had not sold a share and actually purchased more shares in 2014.
At the time of this writing, IBM is the third-largest holding in the Berkshire Hathaway portfolio, trailing only below Wells Fargo and Coca-Cola.
Ginni Rometty, CEO of IBM, dismissed the idea that the tech company is about to split up, even though it is so large in size, and the fact that it is such a large tech company and the miss in Monday the earnings report.
“There is no doubt that marketplace speed has increased,” she said in an interview on CNBC. “We have a very clear strategy about how to take this company to the future.”