Buffett's holdings all see decreased IBM spending on the horizon. Buffet knows I... | Hacker News

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		crb002 on May 7, 2017 \| parent \| context \| favorite \| on: Warren Buffett says he dumped a third of his IBM s... Buffett's holdings all see decreased IBM spending on the horizon. Buffet knows IBM will need a massive bond infusion as a life raft. Sell the stock now, lend proceeds back to IBM at 12% interest, and buy the shares back at half price.

runeks on May 7, 2017 | [–]

In my opinion, there's no way in hell IBM will end up paying 12% interest on any bonds issued. 20 years ago, perhaps, but not today.

easilyBored on May 7, 2017 | | [–]

Is IBM losing money to need a bond infusion? They are paying nearly 4% in dividends.

koolba on May 7, 2017 | [–]

Reminds me of his GS preferred share deal.

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