Berkshire Hathaway, the conglomerate led by legendary investor Warren Buffett, has been reducing its stake in Hewlett Packard (HP) in recent months. According to a regulatory filing released on Monday night, Berkshire Hathaway now holds a 2% stake in HP, down from its previous stake of about 10%.
Shares of HP dipped more than 1% in after-hours trading following the news of Berkshire Hathaway's reduced stake. Despite the reduction, Berkshire Hathaway still owns 55 million shares of HP, making it the third-largest institutional shareholder of the company, behind BlackRock and Vanguard.
Background on Berkshire Hathaway's Investment in HP
Berkshire Hathaway initially purchased HP shares in April 202However, the investment has not been profitable thus far, as the stock is still below its initial purchase price. While HP shares have gained 13% this year, they have underperformed the broader market.
In October and November, Berkshire Hathaway sold an additional 46 million HP shares, further reducing its stake in the company. The conglomerate has likely collected under $2 billion in proceeds from the sales, underscoring the fact that HP has been a losing bet for Berkshire Hathaway.
Hewlett packard 1587h: ultimate guide to powerful performancePossible Reasons for the Stake Reduction
It is unclear why Berkshire Hathaway has been reducing its stake in HP. It is possible that the conglomerate may have soured on the business or wanted to free up cash for other investment opportunities. Berkshire Hathaway has been selling stocks on a net basis over the past year, increasing its cash pile to a record $157 billion as of September 202
It is worth noting that Berkshire Hathaway's investment in HP is relatively small compared to its overall stock portfolio, which includes significant stakes in companies like Apple, Bank of America, Coca-Cola, and American Express. It is possible that one of Buffett's deputies, Todd Combs or Ted Weschler, spearheaded the HP investment and is now seeking to close it out.
About Hewlett Packard (HP)
Hewlett Packard, founded by Bill Hewlett and Dave Packard in 1939, is a veteran hardware company that has since split into two separate entities. The PC and printer business operates under the name HP Inc, while the enterprise division was spun off in 201
Berkshire Hathaway's reduced stake in Hewlett Packard reflects the conglomerate's decision to reallocate its investment portfolio. While the exact reasons behind the stake reduction are unknown, it is clear that HP has been a losing bet for Berkshire Hathaway thus far. As with any investment decisions, it is important for investors to carefully evaluate the potential risks and rewards before making any investment choices.
Hp calculator manuals: unlocking the full potentialDid Berkshire Hathaway sell more of its HP stock?
Yes, Berkshire Hathaway sold another 46 million HP shares in October and November, further reducing its stake in the company.
Yes, Berkshire Hathaway sold 8 million shares of HP Inc. worth about $130 million in recent days, according to a filing with the Securities and Exchange Commission.
What exactly does Berkshire Hathaway do?
Berkshire Hathaway is a conglomerate that owns and operates a diverse range of businesses across various industries. The company's portfolio includes significant investments in publicly traded companies, as well as wholly-owned subsidiaries in sectors such as insurance, utilities, and manufacturing.