Webinar: Global portfolio’s new China, and goodbye to IBM

May was a particularly exciting month for the Biznews Global Portfolio. The portfolio has not only delivered 31% annualised growth since its inception in December 2014 but there was a change in the stock mix. The two biggest drivers of this growth, the portfolio's two runaway stocks are Amazon and Google, lead by the great minds of Jeff Bezos, Larry Page and Sergey Brin. But IBM has been a laggard, and after Berkshire Hathaway chairman Warren Buffett cut his holding by one third, Biznews decided to follow his lead, but sold off the entire stake. The other exciting news is the portfolio has a new edition, our new China. Tencent has been added to the portfolio, most South Africans who hold Naspers would be very familiar with the name. But to get more insight behind these decisions, the audio has been fully transcribed below. – Stuart Lowman

Alec Hogg: Right and let's get into it because we have quite a lot to talk about today, first of all, goodbye IBM. Why goodbye IBM? Well, I've been singing their praises or trying to anyway ever since we bought the stock in December 2014 at $160. It briefly went into profit, and then took a terrible dive down (as you can see on this chart) in March 2016. It was down by 25% on what we bought it at. Then it recovered and all seemed to be well and then Warren Buffett has just gone and put a pin in it. Buffett has been buying these shares since 2011. He has liked the idea of IBM. It was the very first tech stock that he bought and his feeling was that they were going to be successful in converting from the old IBM to the new one.

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