IBM

If you are wondering where your transformational merger is going wrong, you may want to look in the toilets. After Lenovo bought IBM’s personal computer business in 2005, the Chinese company replaced traditional squat toilets in its Beijing headquarters with western-style sit-down bowls to put non-Chinese colleagues and customers at ease.

Andrew Hill

Getty Images

A video about how IBM’s supercomputer Watson took on human contestants in the Jeopardy game show was playing in the lobby of the company HQ when I visited in September. Read more

John Gapper

Warren Buffett’s foray into IBM, acquiring a 5.5 per cent stake in the company, seems to defy his longstanding antipathy to investing in technology companies. But it depends on what the meaning of “technology company” is.

Mr Buffett’s main objection to technology has always been its unpredictability, as he explained in this discussion with Bill Gates in 1998, which was published by Fortune magazine:

“I look for businesses in which I think I can predict what they’re going to look like in 10 or 15 or 20 years. That means businesses that will look more or less as they do today, except that they’ll be larger and doing more business internationally.”

“So I focus on an absence of change. When I look at the internet, for example, I try and figure out how an industry or a company can be hurt or changed by it, and then I avoid it. That doesn’t mean I don’t think there’s a lot of money to be made from that change, I just don’t think I’m the one to make a lot of money out of it.”

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