3 Reasons to Buy Dow Mover IBM


The following video is part of our "Motley Fool Conversations" series, in which senior technology analyst Eric Bleeker and consumer-goods editor and analyst Austin Smith discuss topics around the investing world.

We've been looking at reasons to buy and sell every Dow component to give investors a feel of the risks facing every stock in the index. Today we take a look at IBM, the one Dow stock every Dow investor should be familiar with. The company accounts for about 12% of the Dow's weighting, nearly doubling its closest competitor. As far as three reasons to buy, Eric cites the continuing strength of IBM's brand and the value that provides.

He also cites leadership. While all the talk about new CEO Virginia Rometty has centered on the fact that she's a woman -- hello, endless Masters stories -- she also comes from the line of Gerstner and Palmisano, two of the strongest CEOs in recent memory. That lends her a lot of credibility as she leads what has been the best leadership team in big IT.

Finally, Eric says Europe fears could prove to be a long-term boon for IBM, as it picks up market share from laggards like Hewlett-Packard in tough times. To see Eric's full thoughts on IBM, watch the following video.

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At the time thisarticle was published Austin SmithandEric Bleekerhave no positions in the stocks mentioned above. The Motley Fool owns shares of Apple, IBM, and Oracle.Motley Fool newsletter services recommendApple. Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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