Warren Buffett makes big IBM investment

Billionaire investor Warren Buffett announced Monday that he has bought nearly $11 billion worth of IBM stock over the last eight months, Reuters reported. Buffett made the announcement on the cable television network CNBC. 

According to Reuters, the move potentially makes Buffett IBM's largest shareholder, with a 5.5 percent stake. 

Buffett has in the past stayed away from investing in technology companies, but the BBC reported that he was impressed with IBM's planning, global reach and continuity. 

"If you're in some country around the world and you're developing your IT department you're probably going to feel more comfortable with IBM than with many companies," Buffett said.

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According to the BBC, Buffett started buying IBM stock after reading the company's 2010 annual report and speaking with technology professionals who work for companies he already is invested in. 

"It is a big deal for a big company to change auditors, change law firms, or change IT support," Buffett said. "There's a fair amount of presumption in many places that if you're with IBM, you stay with them."

Bloomberg reported that IBM's stock has gained 19 percent this year, despite the turmoil in global markets.

Buffett also had some words of praise for IBM's new CEO, Virginia Rometty.

“She’s explained these plans they have for the next five years. I have no reason to be anything other than positive,” he said, according to Bloomberg. “And they’re batting 1,000 in the last two CEO’s they’ve come up with.”