The Simple Genius of IBM

T = Trends Support the Industry

IBM has five segments, which are Global Technology Services, Global Business Services, Software, Systems and Technology and Global Financing. This strong diversification leads to a high probability of a positive trend somewhere. The only real threat is a complete economic collapse.


IBM is currently trading at 14 times earnings, which is well below the industry average of 24 times earnings. Margins are solid, cash flow is superb, earnings growth is consistent and there is a 1.70 percent yield. There’s a lot to like. A pullback is definitely possible, but IBM is for investors interested in the long haul, and over the long haul, IBM is a winner.

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IBM is a long-term OUTPERFORM.

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