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Is IBM a Good Long Term Investment?
IBM just used part of its cash hoard plus a lot of debt to buy Red Hat which is a Linux software and cloud computing company. The purchase comes on the heels of a weak quarterly report due to soft software and server sales. And, news of the purchase drove the stock a bit lower. We have ask, is IBM a good long term investment?
International Business Machines
IBM has been around since 1911 and took the name International Business Machines in 1924. The company has been a dominant presence in the world of computing and basic research for decades. Over that time its employees have earns five national medals of science, 10 National Medal of Technology, 6 Turing awards, and 5 Nobel prizes. Inventions from IBM include the SQL programming the language, automatic teller machines, bar codes, DRAM (dynamic random access memory), and many others. The company holds the most US patents for any business.
Through the middle of the 20th century IBM dominated the marker for the large main frame computers that were necessary for large businesses and governmental organization. But, the company was caught napping by the advent of the personal computer and faster and more efficient computer chips and programming. In its attempt to catch up with Apple computer it gave Bill Gates and Microsoft a start by using its operating system for their computers. Gates was quoted as saying that many billionaires were created by the need to fix various inadequacies in the IBM personal computer design.