When Warren Buffett gets hit in his choice of stocks, it’s a strong indicator that the market is sailing through highly unpredictable times. International Business Machines Corp. (NYSE:IBM) tumbled 3.5% on Tuesday after a 9.5% decline on Monday. The company has issued a statement and said that the losses were because of the transition period in which, it was negotiating its ways in the Cloud domain. Warren Buffett’s Berkshire Hathaway has lost around $1 billion in International Business Machines Corp. (NYSE:IBM) after the latest decline of the chipmaker. Discussing International Business Machines Corp. (NYSE:IBM)’s stock in a program on CNBC, notorious tech entrepreneur and investor, Mark Cuban said that he is a huge fan of Warren Buffett but his latest choices about International Business Machines Corp. (NYSE:IBM) are not smart.
Cuban thinks that International Business Machines Corp. (NYSE:IBM) is no longer a tech company. It relies on bad acquisitions and buy backs and has no value at all in the market in terms of innovation and ecosystem. International Business Machines Corp. (NYSE:IBM) is focusing on financial engineering. There was a time when International Business Machines Corp. (NYSE:IBM) was tagged under software and Services Company, but the latest tumble and confusions have depicted a lot of mismanagement, thinks Cuban.
According to Cuban, International Business Machines Corp. (NYSE:IBM) is an amalgamation of multifarious ventures now. It tries with hit and trial strategy which does not work anymore in the market. There must be a complete, dedicated and well-defined structure in the technology sector to imbibe investors and profits.
International Business Machines Corp. (NYSE:IBM) has been criticized by many investors across the board because of its inability to achieve milestones in the Cloud domain. Cloud is the future in the tech markets and International Business Machines Corp. (NYSE:IBM) is unable to complete with its competitors like Microsoft and Salesforce so far.
Warren Buffett’s Berkshire Hathaway hold around 70 million International Business Machines Corp. (NYSE:IBM) shares.
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