Tags: Gabelli | Investors | Buffett | Buys | Sells

Gabelli: Investors Should Watch What Buffett Buys, Not What He Sells

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By    |   Friday, 05 May 2017 11:05 AM

Billionaire value investor Mario Gabelli says savvy market players will pay attention to what financial guru Warren Buffett is buying, not what he has sold.

"What is Warren looking at? Where is he going hunting? Forget about what he sold, OK? That was done. Where is he going?" Gabelli told CNBC.

Gabelli, chairman and CEO Gamco Investors, spoke a day after Buffett announced that his Berkshire Hathaway had unloaded about a third of its stake in IBM.

Gabelli started buying Berkshire's Class A shares some 30 years ago, when they went for about $2,000 each. As of Thursday's close, the stock was worth $249,540 per share, up more than 15 percent this year.

"I've revalued it somewhat downward," Buffett told CNBC. "When it got above $180 we actually sold a reasonable amount of stock."

Gabelli said Buffett could have made more money if he put his IBM stake in Amazon instead.

"There's always some portfolio adjustments," Gabelli said.

Buffett revealed to CNBC that he has sold about a third of his stake and "revalued" downward the computing giant.

In early Wall Street trade, IBM shares were down 2.5 percent at $154.00.

Buffett, one of IBM's biggest shareholders, told CNBC he had divested shares in the first and second quarter.

"I don't value IBM the same way that I did six years ago when I started buying," he told the financial channel. "I've revalued it somewhat downward."

Buffett added that "IBM is a big strong company, but they've got big strong competitors too."

Buffett, who heads the Berkshire Hathaway holding company and is among the world's richest individuals, invested some $10.7 billion in IBM in 2011 for a stake of some 5.5 percent. His stake was worth an estimated $13.5 billion at the end of 2016.

(Newsmax wires services contributed to this report).

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Billionaire value investor Mario Gabelli says savvy market players will pay attention to what financial guru Warren Buffett is buying, not what he has sold.
Gabelli, Investors, Buffett, Buys, Sells
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2017-05-05
Friday, 05 May 2017 11:05 AM
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