Billionaire investor Warren Buffet is dumping IBM stock to buy into a drugs company as part of a new focus on healthcare.
Buffet’s company Berkshire Hathaway has sold almost all its IBM stock over the past three months, amounting to 35 million shares.
He has also sold 6 million shares in Wells Fargo and 10 million in General Motors and bought 31 million in Apple, according to CNN Money.
Instead he has taken a $358m stake in Israeli drug-maker Teva Pharmaceuticals, according to a filing with the US Securities and Exchange Commission (SEC). Teva supplies one in six generic prescriptions in the US.
In January, Berkshire announced it was teaming up with Amazon and JPMorgan Chase to launch a business to give US workers better health insurance.
Buffet’s dumping of IBM did not come as a big surprise to the market, having already offloaded a large chunk of stock last May.
“I don't value IBM the same way that I did six years ago when I started buying,” he told CNBC. “I think if you look back at what they were projecting and how they thought the business would develop, I would say what they've run into is some pretty tough competitors.”