Berkshire Hathaway Continues to Reduce Stake in HP Stock

Berkshire Hathaway, led by renowned investor Warren Buffett, has sold an additional 5.1 million shares of HP Inc. in recent days, as the company continues to decrease its stake in the personal computer and printer manufacturer. The sales, valued at approximately $142 million, were made at an average price of around $25.75 per share. This move follows a series of consistent sell-offs by Berkshire Hathaway over the past nine trading sessions, resulting in a current stake of 10.2% in HP.

Berkshire Hathaway had initially accumulated the HP stake in early 2022 and completed its buying spree in April of the same year. The recent sales suggest that Buffett, who oversees the company’s substantial equity portfolio, may be planning to further reduce the HP stake. In the past year, Berkshire Hathaway has also decreased its holdings in U.S. Bancorp and Bank of New York Mellon.

As Berkshire Hathaway’s stake in HP approaches the 10% threshold, the company would no longer be required to file with the Securities and Exchange Commission within two business days of any changes in the position. To achieve this, Berkshire Hathaway would need to reduce its holding to under 99 million shares of HP, compared to the current 100.9 million shares.

Although Berkshire Hathaway is likely incurring a loss on the HP sale, having purchased the stake at a higher price, the company has been more active in buying and selling stocks in its equity portfolio in recent years. Buffett, known for his discreet investment strategies, prefers to execute transactions quietly. However, due to Berkshire Hathaway’s ownership stake exceeding 10%, regulatory filings are necessary.

For more information, contact Andrew Bary at andrew.bary@barrons.com.