The computing conglomerate has lost the support of its biggest investor in the Warren Buffett IBM break-up.

Warren Buffet abandoned his shares of IBM due to a lack of confidence in the company’s recent market performance.

Chairman and CEO of Berkshire Hathaway, one of the largest public companies in America, Buffet is a respected figure in the business world.

As such, he holds the reputation of being the most successful investor in the world. Furthermore, pundits hail him as the second wealthiest individual in the nation.

Warren Buffet began investing in IBM six years ago. He and the tech giant’s managers believed the company’s performance would be better than it is now.

Poor performance causes Warren Buffett IBM finale

Yet, after owning roughly 81 million of IBM’s shares, he’s decided to pull the plug. The increasingly competitive landscape of the computing industry appears to be his reason.

Consequently, Buffet sold a third of his shares in the first two quarters of 2017.

However, in spite of Buffett, Berkshire Hathaway continues to hang onto its 50 million IBM shares.

For the first time in five quarters, April saw IBM experience a decrease in revenue. The cause for this decline is a drop in demand of its IT services.

Until recent events, IBM was one of Berkshire Hathaway’s biggest investments. It stood alongside other major brands such as American Express, Apple, and The Coca Cola Company.

YouTube/Evan Carmichael

Warren Buffet further explains his reasoning for selling his shares:

“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 […] IBM is a big strong company, but they’ve got big strong competitors too.”

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