Warren Buffett's Berkshire Reveals Stake in HP; Shares Surge Over 14%
Synopsis: The revelation has resulted in HP shares surging and hitting a record high with a jump of over 14 percent. Notably, Buffett who is now on an investment spree has avoided technology companies for most of the years of his career.
Warren Edward Buffett has acquired an 11.4 percent stake in a multinational technology company and computer & printer maker HP (Hewlett-Packard). The revelation was made through Berkshire Hathaway's regulatory filing on Wednesday. The stake is reportedly valued around over $4 billion.
Berkshire has revealed that it owns approximately 121 million shares in HP including the ones bought in the ongoing week. The filing also mentions that the company was owning over 110 million shares until April and it boosted the position by taking it to 121 million shares within the three days of the ongoing week, which is a rise of around 10 percent.
The revelation has resulted in HP shares surging and hitting a record high with a jump of over 14 percent. Notably, Buffett who is now on an investment spree has avoided technology companies for most of the years of his career. He usually has been giving preference to the businesses that are simpler, and predictable.
With the investment, Berkshire has become the majority stakeholder in the computer and printer maker company. The major point to note about Buffett's recent investments is that his company ended the year 2021 by acquiring over $161.2 billion stakes in iPhone maker Apple. Meanwhile, HP has welcomed Berkshire Hathaway's investment calling them
one of the world’s most respected investors.
As per reports, Berkshire in the United States (US) stock exchange filing has also revealed that it has made a new investment worth approximately $22 billion in the last month. The investments include the company's 14.6 percent stake in Occidental Petroleum and purchases of over $11.6 billion in Alleghany Corp.
Reports also suggest that the company based in Palo Alto, California is interested in buying an audio and video accessories company named Poly at $1.7 billion. The company was earlier known as Plantronics.
HP was founded in 1939 by Bill Hewlett and David Packard in a garage in California. The generated net revenue of over $63.5 billion and $6.5 billion as net income in the last financial year. However, its market capitalization was recorded at $37 billion till the market closed on Wednesday.