This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
What happened
HP‘s (NYSE: HPQ) share price is rising sharply this morning after investors found out that Warren Buffett’s Berkshire Hathaway recently took an 11% stake in the personal computer and printer company.
The tech stock is up by 16.3% as of 10:47 a.m. ET.
So what
Berkshire Hathaway revealed in an SEC filing yesterday that it had purchased about 121 million shares of HP. That massive purchase now makes Warren Buffett’s company the largest shareholder of HP.
The move comes on the heels of Berkshire Hathaway’s acquiring the insurance company Alleghany for $11.6 billion.
When Buffett’s company snatches up a significant portion of a company’s stock or makes an acquisition, investors often pay close attention because of Buffett’s proven track record as a successful investor.
Additionally, the fact that Berkshire bought shares of a technology company — technology being a sector that Buffett typically stayed away from for many years (before buying Apple stock about six years ago) — is likely causing additional enthusiasm from HP investors.
Now what
It’s no surprise that HP investors are excited about this latest development. When Buffett’s Berkshire invests in a company, it often signals to other investors that buying shares of the company could be a good long-term investment strategy.
With today’s huge share price jump, HP’s stock has gained a very impressive 47% over the past six months. And with Berkshire now HP’s largest shareholder, investors are hoping that they have more to look forward to in the coming years.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Warren Buffett just bought $4 billion of HP stock, sending the share price soaring appeared first on The Motley Fool Australia.
Wondering where you should invest $1,000 right now?
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.
*Returns as of January 12th 2022
More reading
- 3 differences between you and billionaires, and 1 thing you have in common
- 2 Warren Buffett stocks to buy and hold if the market crashes
- Is Warren Buffett’s best in the past?
- 3 strong Warren Buffett stocks for a volatile market
Chris Neiger owns Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
from The Motley Fool Australia https://ift.tt/1bWJFQz
Leave a Reply