Tech Warren Buffett Slashes Intel Stake, Adds More IBM By Chris Ciaccia 05/15/12 - 05:22 PM EDT
Stock quotes in this article:INTC, IBM inShare
NEW YORK (TheStreet) -- Legendary investor Warren Buffett has drastically cut his position in chip maker Intel(INTC_), while adding to his stake in IBM(IBM_). More on INTC
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International Business Machines Corp| IBM DOWN Intel Corp| INTC DOWN
Buffett, known for being adverse to investments in technology, initiated a position in the world's largest chip maker in late 2011, but he's since cut that stake by some 4 million shares, per his latest filing with the Securities and Exchange Commission.
As of March 31, Buffett and his firm Berkshire Hathaway(BRK.A_) held 7.745 million Intel shares, down from 11.495 million shares in the previous filing. Warren Buffett cut his Intel stake drastically in the first quarter
The 81-year old value investor made news in late 2011 with a massive purchase of IBM shares, and he added approximately 489,000 shares during the quarter.
The firm also disclosed a new position in Viacom(VIA.B_). Berkshire disclosed a 1.6 million share stake in the entertainment and media conglomerate, worth approximately $75.5 million as of the end of the quarter.
>>View Warren Buffett's Portfolio
Shares of Intel fell 0.5% during the regular session to $26.88. Shares ticked lower in after-hours trading, losing 2 cents to $26.86. IBM shares lost 0.2% to close at $199.04 and saw no after-hours reaction to the news.
Viacom shares lost 1.55% during the regular trading session to close at $46.99 and did not see a reaction in the extended session.
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There is a devil's advocate side of me which says that WB dumped Intel before end of quarter so BH can report nice profits for Q1.
Having done that, he had GS (Mr. Covello) at the palm of his hands to promptly issue yet another "sell" recommendation so he can pick up some more during the current quarter at an even cheaper price.
Unless of course, Mr. Gates warned him to look out for Apple's outdistancing momentum with its iPhone results last quarter, and I do believe iPad could have done even better if not for lack of availability of GPU's in enough quantity to ship all over the world.
BH has dumped a part of Intel stock before March 31st (someone please correct if this is not necessarily true), well before Paul Otellini's attendance at BH on May 4th. Any dump after March 31st (including after May 4th) would not appear in BH's filing yet. Who knows BH might have added to Intel position since then - a small possibility.