Buffet buys into Big Blue and Chipzilla -

Investor Warren Buffet, who famously does not buy tech shares, has suddenly bought  large stakes in IBM and Intel.

Buffett's Berkshire Hathaway made the disclosure with the US Securities and Exchange Commission.

According to CNN, Buffet bought 57 million shares of IBM which makes him the largest investor in the technology giant. He also wrote a cheque for 9.3 million shares of Intel and 4.2 million shares of DirecTV.

So why the sudden interest in technology? Buffett is also famous for buying shares at depressed prices. As the US dropped down the loo recently he was buying up shares left, right and centre.

Economic woes were like buying on a sale, he famously said.

What this means to shareholders is that when Buffet was investing in Big Blue and Intel he thought that the shares were bargain basement for what he expects to make in the long term. This means that his bet is that IBM and Intel will make shedloads in the future and their share price will go up.

This is bad news for AMD, which also has a lowish share price at the moment and was inexplicably not on the all you can eat Buffet smorgasbord.