Warren Buffett’s Berkshire Hathaway reveals major stake in HP Inc., tech stock soars 15%
Warren Buffett attending Berkshire Hathaway’s annual Los Angeles meeting. May 1, 2021.
Warren Buffett’s Berkshire HathawayA major stake was taken in the tech hardware stock HP IncIt became the biggest shareholder in the computer and printer manufacturer.
Securities filings show that Berkshire acquired nearly 121 million HP shares. The stock’s Wednesday closing price was $4.2B, which is approximately 11% of its total value.
Premarket trading on Thursday saw HP shares jump more than 15% thanks to the latest.
Berkshire, an investment firm that had been largely passive in the initial days of the Covid pandemic has now become much more involved in recent months. Berkshire is an investment company announced a deal to buy insurance company Alleghany for $11.6 billionlast month has been scooping upOccidental Petroleum shares.
HP has suffered from a poor performance over the past decade, even though it is an industry leader in personal computers. The stock gained just 50% in the 10 years prior to the Berkshire News.
Amit Daryanani, Evercore ISI tech analyst wrote that Berkshire’s purchase of HPQ shares was a positive sign that HPQ’s strategy/deep values are being validated.
HP is now part of a select group of tech companies that Buffett has made a rare investment in. Buffett was known to have avoided stocks in this sector because they did not fit his style. AppleThis is Berkshire’s largest outside holding, and Buffett’s greatest investment ever. reaping billionsBerkshire has been home to the conglomerate since it began buying property in 2016.
—With reporting by Michael Bloom.