Buffett's Berkshire bought nearly 121 million shares of HP shares, and HP rose nearly 10% after the market.
According to the latest documents disclosed on Wednesday,Berkshire Hathaway has now purchased nearly 121 million shares of Hewlett-PackardThis is the latest in a series of large-scale investments made by billionaire Buffett recently.
Buffett making another big move?
The investment gave Berkshire about 11.4% of HP's shares, worth around $4.2 billion based on HP's closing price of $34.91 on Wednesday. After Berkshire disclosed Hewlett-Packard's shareholding in a filing with the US Securities and Exchange Commission,Hewlett-Packard shares rose 9.9% to $38.38 in after-hours trading.
According to the Form 4 documents submitted by Berkshire on Wednesday, as of this Wednesday,Berkshire has bought around 11 million shares of HP in the past three days at a price of $35 to $37In addition to stocks already held before, the total number of HP shares currently held is slightly less than 121 million shares. As of January 31, HP had issued approximately 1.06 billion shares.
Buffett favors value stocks, and HP just met this requirement. In the fiscal year ending October, the stock's price-earnings ratio was only 8 times. HP shares yield close to 3%.
Buffett has been lurking for a long time and is taking frequent action this year
As early as February 26, Buffett stated in his annual letter to shareholders that “internal opportunities (share repurchases) bring far greater returns than acquisitions,” and in the stock market, there is almost nothing that can “make me...