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Warren Buffet Invests Over $10 Billion In IBM

Berkshire Hathaway, Warren Buffett's investment powerhouse, has purchased 64 million shares of Big Blue worth around $10.7 billion taking its total stake up to 5.5 percent, in what Buffett calls its biggest bet on the technology sector yet.

Through his astute investments Buffett has built up a personal fortune to become the world's third richest man, according to Forbes Rich List 2011.

Interestingly, Buffett claims that IBM had been unaware of his ambition to build a significant stake in the company, which may indicate that BH invested in IBM through third parties.

The shrewd investor said that he decided to invest in IBM after holding talks with unnamed technology executives. Another investment company, State Street Global Advisors, also owns the same percentage of shares in IBM.

IBM's share price has risen by one per cent in premarket trading and has gone up by around 17 per cent in total since Buffett started buying IBM shares back in March.

IBM's current CEO, Samuel Palmisano, is set to be replaced next year by Ginni Rometty, the second woman in less than a year to take the helm of a top tech company. Earlier this year, rival HP, named Meg Whitman as its CEO, following the exit of Leo Apotheker.

Désiré Athow

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.