Warren Buffett is famous for not investing in technology companies. So maybe you think that life-long philosophy has changed after hearing Buffett carry on about his $10.7 billion investment in IBM. But I don’t think that Buffett bought the shares because he finally understands technology. Not at all.
Rather, I think Buffett is enamored of the fat profits IBM is making by scrubbing its staff clean of American workers and replacing them with cheap foreign labor. That’s right, Buffett is feeding at the lucrative “Destroy America” trough – one of the most profitable businesses in history.
And no, you will not hear the jolly old grandpa chortling about offshoring profits during any of his CNBC love-fests with Becky Quick. The media blackout of what IBM is doing is incredibly thorough. Not only will the corporate-owned major media not report it, but I haven’t even heard it discussed in the tech media. I read a lot of tech blogs, and listen to a lot of tech podcasts, and…nothing. IBM will eliminate 78% of its American workers in the next few years, and nobody is talking about it? Amazing.
Maybe one day President Obama will ask Warren Buffett to bring back the IT jobs from India, and Buffett will tell him to pound sand, Steve-Jobs style: “Those jobs aren’t coming back.”
To get the story, we must turn to the great Robert X. Cringely:
Not Your Father’s IBM – Excerpt:
“Top management will remain, the sales organization will endure, as will employees working on US government contracts that require workers to be US citizens. Everyone else will be gone. Everyone.”
Something’s Rotten in IBM Dubuque – Excerpt:
“Whenever IBM has a big project they now have to bring in extra workers, usually from India. … They make sure there are never more than two or three workers coming on the same flight, effectively avoiding notice by Homeland Security.”
Magical thinking at IBM – Excerpt:
“Every non-executive job at IBM is viewed as a commodity that can be farmed out to anyone, anywhere.”
How to Fix IBM in a Week – Excerpt:
“A huge threat to revenue is the only way to move IBM in the proper direction.”
We’re All Just Lab Rats to IBM – Excerpt:
“My recent IBM columns have stirred up a lot of interest everywhere except in the press. One reporter called from Dubuque, Iowa, but that’s all.”
By 2015 IBM Will Look Like Oracle – Excerpt:
“…what could be one heck of a class action lawsuit.”