International Business Machines Corp. (NYSE:IBM) stock is facing bad times and investors are moving away from the stock, except Warren Buffett, the billionaire investor and an authority over the market. But there is another billionaire investor who thinks opposite to Buffett and says that International Business Machines Corp. (NYSE:IBM) has a dark future and Buffett is making a mistake by holding billions of market value of International Business Machines Corp. (NYSE:IBM) in his portfolio.
Stanley Druckenmiller was George Soros’ closest man. He thinks that International Business Machines Corp. (NYSE:IBM) is going to face a long-term revenue decline because of its bad product strategy. International Business Machines Corp. (NYSE:IBM) is repurchasing the stock. International Business Machines Corp. (NYSE:IBM)’s shareholders are not happy with the company, but Buffett said that International Business Machines Corp. (NYSE:IBM) is doing the right thinking by buying more of its own stocks. He said that investors must not be worried about declining stock price of the company. They must make decisions based on long-term valuations.
International Business Machines Corp. (NYSE:IBM) is going to a major transition phase. The company has clearly mentioned that it is going to move away from its conventional hardware business. International Business Machines Corp. (NYSE:IBM) thinks that strategic imperatives, Cloud and mobile first strategy is the key to success in the contemporary markets. The company wants to reinstate itself in the software and services business. This is the reason why Warren Buffett is investing even more in International Business Machines Corp. (NYSE:IBM). He thinks that International Business Machines Corp. (NYSE:IBM) will come back in business with a bang.
International Business Machines Corp. (NYSE:IBM)’s strategic imperative business as shown some positive signs. The company has well-threaded relations in the corporate and the Enterprise world and these factors bode well for the company.
Warren Buffett’s Berkshire Hathaway hold around 70 million International Business Machines Corp. (NYSE:IBM) shares.
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