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Warren Buffett Buys 5.5% of IBM

IBM was up nearly $2 pre-market to $189.25, tickled 1% on the news. Its top has been $190.53

Tech-shy Warren Buffett disclosed on CNBC Monday morning that his company Berkshire Hathaway has acquired a ~5.5% position in IBM since March, spending about $10.7 billion to pick up roughly 64 million shares.

He said he spent about $170 a share on average.

IBM was up nearly $2 pre-market to $189.25, tickled 1% on the news. Its top has been $190.53.

A close friend of Bill Gates, Buffett is famous for steering clear of high-tech investments. Now he said he regrets not buying IBM back when Lou Gerstner was running the company. Reading IBM's 2010 annual report persuaded him. He said IBM details its growth plans and delivers on its promises. Its "stickiness" with IT departments and big stock buy-backs also contributed.

Berkshire was supposed to file a quarterly update on its portfolio with the SEC Monday afternoon. Apparently it won't show the full extent of its IBM holdings because some of the stock was acquired in Q4 and the filing only covers Q3.

The revelation is supposed to come as a complete surprise to IBM.

Reuters says Berkshire's new position will tie with State Street Global Advisors' as the largest in the company.

If IBM goes down, Buffett said Berkshire might buy more.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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