he famous American billionaire Warren Buffett has accumulated about US$10.6bn in IBM stock over 2011, an unusual move for the investor who is typically known to steer away from technology companies. He said he and his team started buying the company’s stock because he was impressed with its 2010 financial results.

Buffett revealed the purchase of about 64m shares in IBM (roughly 5.5% of the company) by his Berkshire Hathaway fund since March in an interview broadcast live on CNBC on Monday. When the interviewer asked him to explain the departure from the norm, he said it was reading the company’s 2010 annual report that made him change his mind about IBM.

“I've had two interesting incidents in my life connected with IBM, but I've probably read the annual report of IBM every year for 50 years,” he said. “And this year it came in on a Saturday, and I read it.

“And I got a different slant on it, which I then proceeded to do some checking out of. But I just—I read it through a different lens.” He said IBM had laid out in its report better than any other company in his experience its road map for the future. Buffett said reading the report made him realize he should have paid more attention to IBM five years ago. After he read the report, his team checked with all companies in his portfolio about IBM’s role in their IT departments.

The responses convinced Buffett further about IBM’s strength. (Read a transcript of the broadcast) IBM reported $11.52 earnings per share for 2010 and $99.9bn in revenue. The company’s current CEO Samuel Palmisano – of whom Buffett spoke highly in the interview – will be replaced in January by Virginia Rometty, who was appointed to the position by the board of directors in October.

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