The investment gives Berkshire a roughly 11.4% stake in HP, worth around $4.2 billion based on the computer and technology company’s closing stock price. personal impression Wednesday of 34.91 dollars.
HP shares rose 9.9% to $38.38 in after-hours trading after Berkshire disclosed the stake in filings with the U.S. Securities and Exchange Commission.
HP, based in Palo Alto, Calif., had about 1.06 billion shares outstanding as of Jan. 31.
Neither HP nor Berkshire immediately responded to requests for comment.
HP’s stake is Berkshire’s third big investment since Feb. 26, when Buffett said in his annual letter to shareholders that ‘internal opportunities offer much better returns than acquisitions’ and little ‘excites us’ in the stock markets. .
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On March 21, Berkshire agreed to buy insurance company Alleghany Corp for $11.6 billion in cash, adding to its portfolio of insurers, including Geico.
Earlier in March, Berkshire disclosed a 14.6% stake in Occidental Petroleum Corp, which cost well over $6 billion to raise.
Before announcing the Alleghany purchase, Buffett had gone six years without a major acquisition, leaving Berkshire with $146.7 billion in cash and cash equivalents. Buffett has pledged to keep at least $30 billion in cash.
Berkshire did not say whether Buffett or his portfolio managers Todd Combs and Ted Weschler are responsible for HP’s stake, although Buffett normally manages larger investments.
Buffett is primarily responsible for Berkshire’s stake in Apple Inc, calling the iPhone maker one of the “big four” companies representing much of the value of his Omaha, Nebraska-based conglomerate.
The other “Big Four” companies are Berkshire Insurers, BNSF Railroad and Berkshire Hathaway Energy.