Berkshire Hathaway Takes 11% Stake in HP

Berkshire Finds Value

It is unclear whether Berkshire CEO Warren Buffett initiated the decision to invest in HP or if it was executed by one of his two portfolio managers,

Todd Combs and Ted Weschler. Buffett traditionally has had the final word on larger transactions.

The investment in HP is also another sign that Berkshire is finding value in U.S. stock market,

After a comment by Buffett in his 2021 annual letter, released in February 2022, that the firm was finding "little that excites us.

The purchase of HP shares follows a recent investment of $7.5 billion in Occidental Petroleum Corporation (OXY) stock and an $11.6 billion takeover of insurer Alleghany Corporation (Y).

Validates HPQ's Strategy/Deep Value

"We view Berkshire buying HPQ shares as a positive that validates HPQ's strategy/deep value," wrote Amit Daryanani, a tech analyst at Evercore ISI, in a note to clients.

HP also has one of the largest share buyback programs among companies that Daryanani covers, and this is another reason why he believes that Berkshire's stake "makes sense."

About HP

HP has product lines that include: commercial and consumer desktop and notebook personal computers; workstations; thin clients; commercial tablets

And mobility devices; retail point-of-sale systems, displays, and other related accessories; consumer and commercial printer hardware, supplies, solutions, and services; and scanning devices.

HP also offers software, support, and services for the commercial and consumer markets. It also has HP Labs and certain business incubation projects.


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