HP share boost 15%

April 8, 2022

An unexpected $4.2 billion (€3.86 billion) share purchase by billionaire Warren Buffett’s Berkshire Hathaway Inc boosted the HP share price jump by almost 15%.

Warren Buffett’s Berkshire Hathaway Inc has purchased 121 million shares for $4.2 billion (€3.86 billion) giving the investor an 11.4% stake in the printer manufacturer and making them HP’s largest shareholder.

The purchase is unusual because, with the exception of Apple, Warren Buffett does not normally invest in tech companies.

Buffett was reported to have a $146.7 billion (€134.9 billion) cash pile at the end of last year as competition from private equity and other investors has led to high valuations.

In their 2021 letter to Berkshire Hathaway investors Buffet commented: “we own stocks based upon our expectations about their long-term business performance and not because we view them as vehicles for timely market moves.” Berkshire Hathaway has also been actively engaged in repurchase Berkshire shares.

HP started actively repurchasing shares in early 2020 to create shareholder value and help stave off the xerox hostile takeover attempt.