Warren Buffett Trims Berkshire Hathaway’s Equity Position in HP Inc.

Warren Buffett, the renowned CEO of Berkshire Hathaway, has been strategically trimming the company’s equity positions, including its stake in HP Inc. On Tuesday, Berkshire Hathaway sold 3.1 million shares of HP for $80 million, reducing its stake in the printer and personal computer manufacturer to just below 10%. The sale was disclosed in a form 4 filing with the Securities and Exchange Commission.

Berkshire Hathaway currently holds 97.9 million shares of HP, representing a 9.9% stake valued at $2.6 billion based on HP’s closing price. The recent sale brings into question whether Warren Buffett will continue to reduce the HP holding, similar to what has been done with U.S. Bancorp and Bank of New York Mellon in the past year.

This move by Berkshire Hathaway follows a trend of more active buying and selling of stocks in its equity portfolio in recent years. The company had accumulated the HP stake in early 2022, and these recent sales mark the first since completing the stock purchase in April of the same year. Prior to the sales, Berkshire held around 120 million shares of HP.

Investors will have to wait until mid-February when Berkshire reports its equity investments as of December 31, 2023, to gain a fresh insight into the company’s HP holdings. With Berkshire falling just below the 10% threshold, it will no longer be required to promptly disclose any future purchases or sales of HP stock.

While Berkshire is likely taking a loss on the HP sale, having purchased the stake at a higher price, the move demonstrates Warren Buffett’s strategic approach to managing the company’s $375 billion equity portfolio.

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