Warren Buffett’s private equity firm Berkshire Hathaway acquired a stake in HP worth more than $4.2 billion. Shares of the laptop maker rose as much as 10 percent on Thursday.
Berkshire bought shares of HP in multiple transactions earlier this week and now owns about 121 million shares in the computer company. This corresponds to a share of just over 11 percent in HP. HP is now the 12th largest in the Berkshire portfolio.
“Berkshire Hathaway is one of the most respected private equity firms in the world and we welcome them as investors in HP,” said a spokesperson for the technology company. Investment giant Berkshire is increasingly looking for ways to put its money back in, helped in part by slow volatility that has sent the S&P 500 index down nearly 6 per cent so far this year. Berkshire bought shares in Occidental Petroleum in March, building a holding that now ranks among Berkshire’s top 10 common stock bets.
Investors happy with Buffett’s decision
HP stock rebounded last year and rose 53 percent in 2021, but it’s down 7.3 percent year-to-date. Berkshire, which has historically shied away from some tech investments, has continued to get into the sector in recent years, building a stake in Apple, which was valued at more than $161 billion at the end of 2021.
However, the decision to continue investing in HP could also come from two of Buffett’s top investment professionals, Todd Combs and Ted Weschler, who together own about 10 percent of Berkshire’s stock.
(Bloomberg/Cash)
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