Shares of personal computer company Hewlett-Packard (HP) are up 10% after it was disclosed
that Berkshire Hathaway (BRK.B) has purchased 121 million shares of the company.
A regulatory filing shows that Berkshire holds an 11.4% stake in HP worth $4.2 billion U.S.
based on the computer and printing company's closing stock price yesterday (April 6) of $34.91
U.S.
HP is the latest in a series of large investments by Berkshire Hathaway, which is controlled by
billionaire Warren Buffett.
Shares of HP rose 9.9% to $38.38 U.S. in after-hours trading after Berkshire disclosed the stake
in filings with the U.S. Securities and Exchange Commission (SEC). Based in Palo Alto,
California, HP has 1.06 billion shares outstanding.
The HP stake is Berkshire's third big investment since February of this year. On March 21,
Berkshire agreed to buy insurance company Alleghany (Y) for $11.6 billion U.S. in cash, adding
to its portfolio of insurers that includes Geico.
Berkshire Hathaway also revealed a 14.6% stake in Occidental Petroleum (OXY), which cost
more than $6 billion U.S. to acquire.
Before announcing the Alleghany purchase, Buffett had gone six years without a major
acquisition, leaving Berkshire Hathaway with $146.7 billion U.S. of cash on its balance sheet.
Buffett has pledged to keep at least $30 billion U.S. of cash on hand.
Berkshire Hathaway’s Class B stock is up 15% year to date at $344.71 U.S. per share.
