Berkshire Hathaway, led by legendary investor Warren Buffett, has significantly reduced its stake in HP Inc., the renowned maker of printers and personal computers. According to a recent Form 13-G filing, the company’s stake is now at 5.2%, down by 47% in the past two months.
As of November 30, Berkshire held 51.5 million shares of HP, marking a substantial decrease from its previous holding of 97.9 million shares (9.9%) on October 3. The value of the remaining stake currently stands at approximately $1.6 billion.
During September and early October, Berkshire had been steadily selling its HP shares after accumulating around 12% interest in the company last year. As they held more than 10% of HP stock during that period, Berkshire was required to file within two business days of any sales. However, as their holdings dropped below the 10% threshold, this requirement came to an end.
Now classified as a 5% holder of HP, Berkshire is obligated to periodically file a Form 13-G. This prompted the recent filing on Monday, reflecting the change in their stake.
Berkshire’s strategy typically involves reducing positions in companies gradually until they are eventually eliminated entirely. This pattern has been observed with various stocks, including U.S. Bancorp. Should Berkshire continue this trend, it raises the possibility of further HP sales in the coming weeks.
Despite Berkshire’s divestment in HP, the stock prices have remained resilient. Over the past two months, HP shares have actually risen by about 15%.