- Published: November 17, 2021
- Updated: November 17, 2021
- University / College: University of Kent
- Level: Secondary School
- Language: English
- Downloads: 31
Elevator Pitch: Buy IBM Wouldn’t you want to invest in what Warren Buffet just recently invested in? A total of $11 billion of IBM stocks was recently purchased by Buffet as reported by Nowacki, the Chief Investment Officer of Nowacki Asset Management (Nowacki Asset Management). IBM has reached its centennial business life having been established in 1911 as “ a growing leader of innovation and technology and a prototype for the newly emergent multinational corporation” (IBM: Early Ambitions). Today, IBM wants to be known as a global organization that exemplifies in information handling and technological breakthroughs. Its 2010 financial highlights revealed a staggering $99. 9 billion revenue with a net income of $14. 8 billion (IBM: About IBM)
There is significant demand for IBM’s products and services that range from software, systems and servers, storage to networking, semiconductors and both technical and customer support. The fact that Buffet recently invested more than $11 billion for IBM stocks indicate the investor’s firm commitment for significant potentials for high returns.
Its current market price at $192. 18 as of December 12, 2011 (Bloomberg Businessweek) indicate that the stock of fairly valued. According to Seeking Alpha, “ IBMs business quality (an evaluation of our ValueCreation and ValueRisk ratings) ranks among the best of the firms in our coverage universe. The firm has been generating economic value for shareholders with relatively stable operating results for the past few years, a combination we view very positively” (Seeking Alpha par. 4).
With an asset base of $113. 5 billion and a number of employees totaling more than 425 thousand worldwide, IBM remains to be the most financially resourceful and most secure investment that would prove to be financially rewarding in the coming year.
Works Cited
Bloomberg Businessweek. International Business Machines Corp. 12 December 2011. 13 December 2011 .
IBM. About IBM. 2011. 13 December 2011 .
—. Early Ambitions. 2011. 13 December 2011 .
Nowacki Asset Management. 7 Stocks That Will Outperform In 2012 . 9 December 2011. 13 December 2011 .
Seeking Alpha. IBM Is A Great Company With Fairly Valued Shares. 9 December 2011. 13 December 2011 .
