HP stock rose nearly 10 after Warren Buffetts fund bought

HP stock rose nearly 10% after Warren Buffett’s fund bought 121 million shares of the company

Investment structure Berkshire Hathaway Inc., founded by billionaire Warren Buffett (Warren Buffett), in particular, sympathy for the assets of computer manufacturers was not noticeable, although it owns a stake in Apple. Against this background, the purchase of 121 million shares of HP Inc. immediately contributed to the growth of its market value by 9.9%.

    Image source: HP Inc.

Image source: HP Inc.

As I said at the moment Reuterswhich is part of Buffett’s structures, a stake in HP Inc.’s capital reaches 9.9%, and its market value is equivalent to $4.2 billion. Wednesday’s trading ended the company’s shares at $34.91 a share, but after The news of an increase in Berkshire Hathaway stock rose to $38.38.

This is the fund’s third major asset purchase since February 26. In March, he invested in insurance company Alleghany Corp. of $11.6 billion and also gave up ownership of a 14.6 percent interest in energy company Occidental Petroleum Corp. totaling more than $6 billion. Prior to these moves, Berkshire Hathaway had not made any major purchases for about six years and had accumulated about $146.7 billion in cash and other highly liquid equivalents. The minimum amount of cash the fund wants to keep after investing in various assets is $30 billion.

It’s easy to explain investors’ enthusiasm for HP Inc.’s growth after disclosure of the fact that Buffett’s structures had bought a large stake. Many analysts in recent weeks have expressed doubts about the PC market’s ability to at least hold last year’s numbers through year-end, and sales are increasingly forecast to fall by 6% to 10%. If, under such conditions, a large investor sees prospects in the assets of a PC manufacturer, then this stimulates the appearance of like-minded people.


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Johnson Smith

Johnson Smith is interested in Home Theater & Audio, Smart Tech, Google News & Products, How To, Apple News & Products, Cell Phones, Automotive Technology.

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