The Real Reason AT&T and IBM Are Partnering

A deal to make smarter cities underlies a bigger issue plaguing both companies.

Feb 20, 2014 at 9:00PM

AT&T (NYSE:T) and IBM (NYSE:IBM) are partnering at just the right time, Fool contributor Tim Beyers says in the following video.

The two are cooperating to help cities and mid-size utilities glean data and insights from the Internet of Things. Principally, the idea is for AT&T to provide mobile technology and software while IBM contributes data analytics for helping assess the health and performance of city infrastructure.

Sound ambitious? Perhaps, but Tim says AT&T and IBM have no choice but to think bigger, thanks to huge changes in their core industries. Look at how T-Mobile has altered how we think of mobile pricing and contract commitments. Or consider how the do-it-yourself server movement has cut into IBM's hardware sales. Big Blue sold its low-end server division to Lenovo in response.

Teaming on smart cities won't offer any immediate relief, especially since IBM has already spent years pitching its "Smarter Planet" consulting services. But it's a start. Investors can't ask for much more than that, Tim says.

Now it's your turn to weigh in. How are you investing in the Internet of Things? Please watch the video to get his full take and then leave a comment to let us know whether you would buy, sell, or short AT&T or IBM stock at current prices.

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Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team and the Motley Fool Supernova Odyssey I mission. He owned shares of International Business Machines at the time of publication. Check out Tim's web home and portfolio holdings or connect with him on Google+Tumblr, or Twitter, where he goes by @milehighfool. You can also get his insights delivered directly to your RSS reader.

The Motley Fool owns shares of International Business Machines. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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