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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: J Mako who wrote (45492)	11/16/2011 5:33:53 PM
From: Dennis 3	Read Replies (2) \| Respond to of 78705

Buffett investment in IBM, IMO, suggest that there is some opportunities in large cap tech. Large cap tech have been essentially flat the past decade. Being in IT, IBM blows away HP in software and Hardware. Working with both I can tell you that IBM has highly skilled personnel in R&D because of functionality and ease of use of their backend servers and software. Which could explain why the HW/SW is more expensive. Also, IBM services business are highly skill consulting people compared to HP. Almost like comparing Goldman Sachs to Etrade( not to that extreme but you get the idea). With that said HP is still a better buy based on many multiples. Buffett invested in IBM because he has an elephant gun and it takes an elephant to move buffett Billions. His $10 billion investment in IBM would be 20% of HPQ which would cause accounting and tax issues that he does not want. Just my two cents