Warren Buffett Nearly Exits Entire IBM Stake

Warren Buffett Nearly Exits Entire IBM Stake

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The video discusses Warren Buffett's investment in IBM, highlighting the challenges faced during his holding period, including IBM's strategic shift towards cloud computing under CEO Ginny Rometty. Despite Buffett's traditional aversion to tech investments, he ventured into IBM, which faced declining profits. The discussion also touches on Buffett's broader investment philosophy and the evolving stance of Berkshire Hathaway towards technology stocks.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was one of the main challenges Warren Buffett faced with his IBM investment?

The stock price increased too quickly.

IBM was not involved in cloud computing.

IBM's leadership was unstable.

The stock price declined during his holding period.

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What strategic change did Ginny Rometty implement at IBM?

Increased focus on mainframes

Expansion into cloud computing services

Reduction in software development

Increased hardware production

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was the general perception of IBM's financial performance during Buffett's investment?

Increasing revenues and decreasing earnings per share

Shrinking revenues and rising earnings per share

Stable revenues and earnings per share

Increasing revenues and stable earnings per share

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which company did Warren Buffett eventually invest in, indicating a shift in his technology investment strategy?

Microsoft

Google

Amazon

Apple

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What did Charlie Munger identify as a potential mistake in their investment strategy?

Investing in too many startups

Investing too heavily in technology

Focusing on international markets

Avoiding technology investments