http://www.investopedia.com/news/ibm-pension-fund-sells-ibm-stock-q1-13f-shocker-ibm-wfc/
When Warren Buffett, the celebrated investor, billionaire, and chairman of Berkshire Hathaway, makes an investment move, thousands of investors around the globe instantly follow suit. The investment guru is known for his level-headed approach and for his long-range planning, and when he makes a major shift in his positions it tends to draw attention. That was the case in recent months with IBM (IBM
International Business Machines Corp
IBM
151.87
+0.72%
). Buffett has long been a vocal supporter of the tech giant, and so it shocked many of his followers when he sold off stock in the company. As is the case with most stocks that Buffett holds positions in, there was speculation as to whether or not the billionaire's shifting interests would spur a larger-scale downshift in investor interest. It seems that has come to pass in at least one potentially embarrassing area: International Business Machines' own pension fund has also recently sold off most of its stake in its parent company stock, according to recent filings.
IBM Retirement Fund Cuts Holdings By More Than 75%
IBM's Retirement Fund reportedly cut its holdings in the parent company stock from 82,802 shares as of December 31, 2016 to just 12,451 shares as of March 31 of 2017. The shift in position was reported by Barrons and is made available to the public via the pension fund's 13-F filing, released in recent days to the SEC in compliance with federal regulations. The shift marks a significant change of perspective for the pension fund. Though pension funds across the country have been commanding unusual attention in recent months, thanks in large part to a widespread shift in hedge fund investments, this one is particularly interesting for its implications for IBM's business health in the future. While it was assumed that Buffett's sale of IBM stock would trigger a broader sell-off, it is unlikely that many analysts expected the company's own retirement plan to mostly exit its position in IBM. It's not immediately clear what this means in terms of the future of the retirement fund or the parent company. In any event, IBM Retirement Fund also sold off shares in Wells Fargo (WFC
Wells Fargo & Co
WFC
52.98
+1.15%
). Wells Fargo was another significant holding for Buffett, and another that the billionaire also trimmed considerably in the past quarter.
Buffett decimated his IBM holdings, trimming down his position for Berkshire Hathaway's class B stock from more than 178,000 shares to just 27,000 shares in January, February, and March of this year.
Retirement Fund Makes Other Cuts, Too
IBM wasn't the only stock that the Retirement Fund cut down on in the past few months. According to the 13-F, the IBM fund also reduced its stake in Apple (AAPL
Apple Inc
AAPL
152.74
+0.13%
), its one-time rival company, dropping from 516,000 to just 78,000 shares. Nonetheless, 78,000 shares of Apple was still more valuable than the remaining shares of IBM in the fund's holdings, at least as of the end of the first quarter.