Analyst says she disagrees with Warren Buffett on IBM

Closing Bell Exchange: IBM drags on the Dow

Billionaire investor Warren Buffett said he sold 30 percent of his share in technology company IBM because of strong competition, but Kim Forrest, portfolio manager and vice president at Fort Pitt Capital Group, said on she does not think it is time to move away from the stock.

"Warren and I are on the opposite sides of that trade," Forrest said during CNBC's "Closing Bell" on Friday. "I came from the world of software and I think I know what IBM is about."

The Fort Pitt Capital Group senior equity analyst said she understands Buffett to be someone who focuses on a company's financials.

"The software that they are selling, they do it by subscription," Forrest said about IBM's Watson and cloud products. "So you don't see the same sort of financial characteristics on the income statement and the balance sheet."

"It's not surprising to me that Warren would be somebody getting out at this point," Forrest added when speaking of the Berkshire Hathaway chairman and CEO.

After IBM posted first-quarter earnings in April, which missed revenue expectations, the stock tumbled 5 percent in extended trading.

Forrest did say she reexamined her position in the company once she heard of the Oracle of Omaha's move.

"It's always alarming when a very large and very public investor is selling out of something that you own," Forrest said. "It makes you take a good look at it.

Shares of IBM closed over 2 percent lower on Friday at a price of $155.05. The stock is down over 10 percent in the last month.