Warren Buffett's Berkshire Hathaway Reveals $4 Billion Stake in Major Tech Company — and Shares Are SkyrocketingThe investment gives Berkshire Hathaway an approximately 11.4% stake in the multinational information technology company.
ByAmanda Breen•
Warren Buffett'sBerkshire Hathawaydisclosed on Wednesday that it has purchased almost 121 million shares of HP Inc., perReuters. The investment gives Berkshire Hathaway an approximately 11.4% stake in the multinational information technology company, valued at about $4.2 billion, and has already sent HP's stock soaring — up nearly 17% as of this morning.
Despite a February 26 annual letter to shareholders in which Buffett stated that "internal opportunities deliver far better returns than acquisitions," and that little excites him and vice chairman Charlie Munger in equity markets, Berkshire's HP purchase is its most recent in a series of major investments.
Related:Want to Become a Millionaire? Follow Warren Buffett's 4 Rules.
On March 21, Berkshire agreed to buy insurance company Alleghany Corporation for $11.6 billion in cash —Buffett's biggest deal in years— and earlier that month, the conglomerate announced a 14.6% stake in Occidental Petroleum, worth upwards of $6 billion.
Historically, Buffett has cautioned against investing in heavy-hitting tech stocks, but that's changed over the years. Today,Berkshire's stake in Applemakes up more than 40% of its equity portfolio, and Buffett has called the iPhone-maker one of the"Big Four" companiescontributing to the conglomerate's staggeringmarket cap of $757 billion.
Berkshire Hathaway is the seventh-most-valuable company in the world, per data fromCompaniesMarketCap, with Class A shares trading at $514,000 and Class B shares at $342.57 as of 10:30 a.m. ET.
