Berkshire Hathaway, Warren Buffett’s conglomerate, has reduced its stake in HP to 5.2%, down from about 10%, according to a regulatory filing. This follows a nine-day selling streak in mid-September through early October. Despite the reduction, Berkshire still owns 51.5 million shares of HP, making it the third-largest institutional shareholder after BlackRock and Vanguard. The current stake is valued at about $1.6 billion based on Monday’s closing price of $30.37.
HP issued first-quarter profit guidance last month that fell below Wall Street estimates, though the company maintained its full-year earnings outlook. The lower-than-expected guidance raised concerns about the recovery of the demand in the personal computers market.
Berkshire had initially bought the tech hardware stock in April 2022, but the investment has not been as lucrative as hoped. The shares are up 13% this year, lagging behind the Nasdaq Composite, which has rallied nearly 38%.
Many observers had speculated that Buffett might be planning to completely exit the HP position. Buffett, known for viewing stock holdings as pieces of businesses, tends to close out a position entirely once he starts selling. He has previously stated, “We don’t trim positions. That’s just not the way we approach it any more than if we buy 100% of a business.”
The reduction in the stake signals Buffett’s ongoing assessment of the investment landscape and adjustment of his portfolio accordingly. While the move may reflect his views on HP’s future prospects, the legendary investor’s decisions are closely watched for insights into broader market trends and investment strategies.
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