Warren Buffett sold about a third of his Berkshire Hathaway (BRK.A) (NYSE:BRK.B) stake in IBM (IBM) earlier this year. The stock is down 4% in the last three months as it continues to work on a transition toward higher margin software-focused businesses - such as cloud computing.
The plan is to get aggressive and unload the low-margin hardware business, which it started doing in 2014. However, even with this, margins have been shrinking at IBM. But it has been investing in research and development since then, and its showing some signs of bearing fruit, with a market lead position in cloud and blockchain technology.
