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Will This Buffett Stock Keep Marching Higher on Thursday?

By Andrew Tonner - Apr 16, 2013 at 9:00PM

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Is Buffett's only tech stock set to continue this rally?

IBM (IBM 1.86%) is the only tech stock Warren Buffett owns. In this video, Andrew Tonner describes why investors should be optimistic about Big Blue's future. Most analysts expect IBM earnings to grow about 9%, from $2.78 per share to about $3.50 per share. The company has a three-pronged business model that helps funnel customers from its low-margin hardware business to its higher-margin software business. IBM also has an even higher-margin consulting business, all of which position IBM well for its long-term goal of earning $20 per share. Corporate leadership looks solid and on board for achieving this goal.

IBM is a classic Buffett stock: a well-run, profitable company selling at a fair (certainly not cheap) price.

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International Business Machines Corporation Stock Quote
International Business Machines Corporation
IBM
$136.89 (1.86%) $2.50

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