Buffett dumps Big Blue: 'I don't value IBM the same way ...'

But Buffett says Berkshire Hathaway, which kicks off its annual meeting Saturday, could still buy IBM shares. IBM was eventually forced to abandon the ambitious five-year financial targets that it had used to "demonstrate its resilience" in the face of tech change.

Warren Buffett has cut his stake in IBM by almost a third since the start of the year, after he revalued the computing company "somewhat downward".

Last year's attendance fell to about 37,000 from more than 40,000 a year earlier. The company has been focused on new businesses, like cloud computing and artificial intelligence, to help revenue growth.

Warren Buffett, chairman and CEO of Berkshire Hathaway, speaks at the Fortune's Most Powerful Women's Summit in Washington October 13, 2015.

Berkshire sold 24 or 25 million shares, CNBC said, with Mr. Buffett telling the network he has "revalued it somewhat downward" because of strong competition.

"It confirms that Buffett shares our belief that Berkshire stock is undervalued", Tilson wrote.

The IBM stake had grown to be one of Berkshire's largest stock investments, along with such companies as American Express, Coca-Cola, Wells Fargo, and more recently Apple and Kraft Heinz. Morgan Stanley estimates that IBM's public cloud business of $3 billion will grow by nearly 33 percent from 2016-2020.

Thousands of Berkshire investors will gather in Omaha, Nebraska, for Berkshire's annual meeting this weekend.

Representatives of Berkshire and IBM didn't respond to requests for comment.

Those three are part of a record 470 proposals submitted to public companies this year, according to advocacy groups that track them.

Much of Berkshire's relative outperformance came decades ago when it was much smaller, and even Buffett has called the company's huge size an "anchor on investment performance". It closed on Thursday at US$159.05 on the New York Stock Exchange. "But we have made no commitment that Berkshire will hold any of its marketable securities forever".

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  • Zachary Reyes