The new largest shareholder sent HP’s quotes up by 15%

Computer manufacturer HP Inc. (HPQ) received a positive impulse at the auction on April 7: shares rose by 14.75% to $40.06. The reason was the announcement of the acquisition of a large share of HPQ by Berkshire Hathaway of the famous investor Warren Buffett. In a letter to the U.S. Securities and Exchange Commission (SEC), Berkshire Hathaway announced the purchase of about 121 million HPQ shares.

Thus Berkshire Hathaway is now HP’s largest shareholder with an 11.4% stake worth $4.2 billion. This has become a driver for the growth of quotations. The participation of such large investors not only provides short-term support for quotes but also reduces volatility. By itself, that Berkshire Hathaway specialists have gained a large block of shares is a strong buy signal for many small funds and retail investors.

In addition, Warren Buffett is a supporter of long-term investments, but rarely buys shares of technology companies, except for such giants as Apple. Berkshire Hathaway does not name the reasons for the purchase, but one factor may be the recent large acquisition of the Poly, Inc. business. (POLY).

Mark Cash, an analyst at Morningstar financial firm, believes that the interest in HP may be because of the return of capital by the company through the buyback of shares and dividends. HP operates in a market with a long history of growth. However, the reason may be simpler, since Berkshire Hathaway has accumulated a huge amount of almost $147 billion, and some investors accused the company’s management of being too cautious. In the current conditions, the choice of tickets for such large investments.

HP is moving towards creating a comprehensive ecosystem of software and hardware for work, study and other tasks that require more complex organization of processes than entertainment. HP remains the beneficiary of promising trends, such as distance work and home education.