What's Mario Gabelli's Take on Markets, Oil, and Stock Picks?

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Part 4
What's Mario Gabelli's Take on Markets, Oil, and Stock Picks? PART 4 OF 6

What Gabelli Thinks about Buffett’s Position Reduction in IBM

Buffett cut position in IBM

Billionaire investor Warren Buffett is well known for his value-investment strategy. Read, Warren Buffett’s Top 4 Investment Strategies, to learn more.

What Gabelli Thinks about Buffett&#8217;s Position Reduction in IBM

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Warren Buffett is a great believer in technology stocks (XLK). He believes innovation and productivity could drive economic growth. His firm, Berkshire Hathaway, has holdings in top technology companies such as Apple (AAPL) and IBM (IBM).

On Friday, May 5, 2017, Buffett declared that his firm reduced some of its position in IBM. According to the institutional ownership report, Berkshire Hathaway (BRK-B) was the largest investor in IBM with 81.2 million shares as of 4Q16. Its total investment in IBM was worth around $14.6 billion.

Buffett said that he doesn’t value IBM stock in the same way that he did six years ago. He also said that when IBM reached $180, the firm sold nearly 30% of the stake. Buffett believes that IBM is seeing very tough competition. Read How IBM is playing in Berkshire Hathaway’s portfolio to learn more.

Mario Gabelli’s stance

Mario Gabelli recently said in an interview with CNBC that if Buffett would have taken positions in the S&P 500 Index (SPY) (SPX-INDEX) or stocks like Amazon (AMZN), then he might have gotten better returns.

Gabelli said in the interview that his firm’s investment decisions are based on the following factors:

  • what’s happening in the economy
  • how regulations are affecting markets
  • how the Federal Reserve is responding to the economic scenario
  • business activity including mergers and acquisitions

In the next part of this series, we’ll analyze Mario Gabelli’s view on Apple (AAPL), Google (GOOGL), and Amazon (AMZN).


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