IBM

IBM has a Quantum Computer business. They have an AI chip business. They have an AI implementation business. They have a cloud business. They have network software, and they have security software. If I ask my broker, he says, "Boring. It trades in a channel, up one day, down the next -- $125 from 2016 to $150 in 2024".

Yet, I look at the chart and for the last 3 years it is bottom left to top right. From $125 Sept 2022 to $253 in September 2025. I compare its Total Returns, and its 2.7% dividend keeps it in the game even against Alphabet and Constellation Software for that time period.

Dan, do you think IBM has what it takes to hit $500 by 2028 while paying a 2.7% dividend?

Not a lot here that moves the needle for me. Debt heavy, slow growing business. Earnings and free cash flow have effectively gone nowhere for the better part of a decade.

High single digit expected growth moving forward in the future and at 20x~ expected earnings, you can get, in my opinion, much higher quality businesses like GOOG for example for around 22x.