Billionaire Warren Buffett has sold one third of the stake in IBM, saying that the company are facing strong competition in the market, CNBC reported.
Buffett, the Chairman and CEO of Berkshire Hathaway Inc., owned about 81 million shares of IBM at the end o f 2016. He sold about a third of stake in the first two quarter in 2017 and now owns only 50 million shares in the company.
Buffett started to buy IBM six year ago and Berkshire Hathaway was IBM’s largest single shareholder at one point.
"I don't value IBM the same way that I did 6 years ago when I started buying... I've revalued it somewhat downward," Buffett told CNBC. "When it got above $180 we actually sold a reasonable amount of stock."
IBM shares fell as much as 2.5 percent to $155.07 in the early trading after the news.
Buffett also said that IBM is now in a market that has many big strong competitors.
Last month, IBM reported its five straight year declining revenues. But it reported better-than-expected earnings thanks to soaring cloud business. The company has been focused on new businesses, like cloud computing and artificial intelligence, to help revenue growth.