Berkshire Hathaway Chairman Warren Buffett walks the exhibit hall as shareholders gather to hear from the billionaire investor at Berkshire Hathaway Inc.’s annual shareholder meeting on May 4, 2019 in Omaha, Nebraska, United States. REUTERS/Scott Morgan/File Photo Acquire License Rights
Sept 13 (Reuters) – Warren Buffett’s Berkshire Hathaway (BRKa.N) said on Wednesday it has sold about 5.5 million shares of HP (HPQ.N), part of a large, unsuccessful investment in wiped out the maker of personal computers and printers.
Berkshire sold the shares for about $158 million this week, reducing its HP stake to about $3.27 billion, according to a filing with the U.S. Securities and Exchange Commission.
Buffett’s company now owns about 11.7% of HP shares, down from 12.2% before the sale, SEC filings show.
It’s not clear from Wednesday’s filing why Berkshire sold shares. Berkshire did not immediately respond to a request for comment after the market closed.
HP’s stock price has fallen 19% since Berkshire announced in April 2022 an unexpected $4.2 billion stake in the Palo Alto, California-based company, which was separated from the former Hewlett-Packard seven years earlier was.
This disclosure caused HP’s share price to rise 14.8% to $40.06 the following day. Shares closed down 61 cents at $28.33 on Wednesday.
On Aug. 29, HP cut its full-year profit forecast as it struggles with a year-long slump in PCs and sluggish demand from China.
Then on Monday, HP disclosed material weaknesses in its financial reporting controls that affected one of its customers and a payment application for some sales incentive programs.
Company stock prices often rise when Berkshire announces new holdings, reflecting investors’ appreciation for Buffett, the fifth-richest person in the world according to Forbes magazine.
Conversely, stock prices sometimes fall when Berkshire announces sales.
Buffett doesn’t regularly invest in technology companies, although iPhone maker Apple (AAPL.O) accounted for about half of Berkshire’s $353.4 billion stock portfolio at the end of June.
Berkshire is based in Omaha, Nebraska. It also owns dozens of companies, including the BNSF railroad and Geico auto insurance.
Reporting by Jonathan Stempel in New York; Edited by Lincoln Feast
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