>> If you had to buy anything, I supposed you'd buy->> When Warren Buffet talks, investors listen. But on Friday, IBM wishes that wasn't the case. The tech company's dropping to a six month low, after the beloved billionaire investor, IBM's biggest shareholder, revealed he sold about one third of his stake earlier this year.
The once tech shy buffet, first bought shares of IBM in 2011, now telling CNBC IBM is a big, strong company, but they've got big, strong competitors, one of them, Apple. Buffet's Berkshire Hathaway upping its stake in the company led by Tim Cook earlier this year. Buffet's admission of the IBM offload coming ahead of his company's Saturday shareholder meeting.
Reuters correspondent, Jennifer Ablan.>> Buffet threw in the towel, he essentially said, I can't back my whole holdings onto this. So this is a huge black eye for IBM investors. And I think Buffet may be less abrasive in his words this weekend at the annual meeting on Saturday, and come out and be a little bit more supportive of management.
Because the last thing that you want is for someone, like Buffet, sell an offload, a ton of his stock.>> Berkshire Hathaway still owns over 50 million shares of IBM, and Buffet said he has stopped selling. His other large investments American Express, Coca Cola, Wells Fargo, and Kraft Heinz.
Buffett's decision to scale back on IBM, is just one more blow to a tech giant, that's been humbled by the growth of digital devices, and social media. In IBM's most recent earnings report in April, it reported a bigger than expected drop in revenues, due to weak demand for its IT services.
That marks the 20th straight quarter of falling sales. Buffet finally deciding he's had enough.