In early 2022, billionaire Warren Buffett, CEO of Berkshire HathawayBRK.AHe began to have a love affair with HP.HPQstock. In April of last year, it was technology-business-berkshire-hathaway-inc-warren-buffett-omaha-a1d9d34f6a69a9a9860161b01b1d42e1″>reported that Berkshire bought about 121 million shares of HP, owning more than 12% of the company.
In May 2023, Berkshire bought 16.48 million more HP shares. However, recently Buffett’s love for the computer, printing and hardware company seems to have calmed down a bit; The billionaire has begun cutting Berkshire’s HP stake, according to filings and agreements with the Securities and Exchange Commission.
Because Berkshire had more than a 10% stake in HP, the company had to file a large number of Form 4s with the SEC, and has been doing so since September. The filings show that Berkshire has sold 33,339,676 HP shares, bringing Berkshire’s stake in HP to less than 10%.
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What may have caused Berkshire to start selling its HP shares is HP’s poor third-quarter results. The PC Company net income In the third quarter it was $13.2 billion, 9.9% less than in the same period last year.
“While we expect another quarter of sequential growth in the fourth quarter, the external environment has not improved as quickly as anticipated and, as a result, we are tempering our expectations,” said Enrique Lores, president and CEO of HP.
In 2022, Buffett bought HP shares for just over $30 each when the company was going through a crisis. growing period during the COVID-19 pandemic. Now, HP stock is selling for about $27 as the company is experiencing a period of decline. HP’s previous growth cycle has likely come to an end as a result of consumers now having all the home office equipment they need.
More information about Berkshire’s buying and selling habits is expected to be revealed in its latest 13F filings with the SEC next week.
