I was a big IBM/Watson fan almost ten years ago now. I would be the annoying guy talking about how they were going to make perfect weather predictions and could solve medical diagnoses better than a board of physicians (I also read that article about their health sector getting scrapped, it depressed me) and The Weather Channel, or their app, used to say 'Powered by Watson', now it just says 'An IBM Company' so so much for branding. Also NVIDIA is building some massive generative model of the entire earth, called Earth-2, which they claim will take an entire warehouse of processors, so there goes Watson's weather simulation. I guess the point is that I feel like an idiot for holding it so long but I eventually sold this year, ironically when a lot of people finally took notice. But I think it is too little too late. Great video.
We're right there with you, except we haven't sold yet :) Our strategy is to always hold unless there's a dividend cut, though IBM hasn't even been able to beat inflation with their increases. This is a prime example of what happens when a company gets too well fed and lazy. Working there must really suck, so hopefully the new leader starts cracking the whip. Seems to be. Glad you enjoyed the video!
Great Analysis would love to see a follow up report after Q2 is reported, their business model is different this time around they are more of a provider for artificial intelligence instead of the end product so i think it’s slightly more risk adverse i’m still bullish on IBM because of how much experience their chip division has especially when it comes to Artificial Intelligence they are one of a handful of companies that can have a competitive product (hardware) versus nvidia and have software that’s tailored for said hardware in one stop shop service that’s less ricky than trying to sell an end product.
Thank you for the comment! We're holding IBM for dividend growth reasons. The extent to which they'll benefit from AI remains questionable given what we talked about in the video. NVIDIA is definitely a one stop shop too (CUDA) so IBM needs to compete against that on the AI chip side. We revisit companies about once a year so next year we'll take another look at the earliest.
