It is sometimes fantastic to see the power which Warren Buffett wields. In today’s world where all have contrasting opinions and stand so divided, this one man, through his mere buying and selling, gets people to think like him, all over the world, without actually a word.
Like his selling of the IBM shares last week. It is a huge shock for IBM – he had held the shares for 6 six years, selling it earlier than his usual long term definition of 10 years. This is devastating for IBM because his selling means others will follow suit and is a huge dent on the confidence of those holding the stock.
Warren Buffett has clearly indicated that the world has moved beyond IBM, notwithstanding its Watson software. He has indicated that this is the time of the likes of Amazon. Buffett said, “I think if you look back at what they were projecting and how they thought the business would develop I would say what they've run into is some pretty tough competitors. IBM is a big strong company, but they've got big strong competitors too."
He still owns more than 50 million shares of IBM and with shares now trading below $160 and Buffett says he has stopped selling.