Warren Buffett is known for preferring simple business over technology. Warren Buffett said in 2014 that “if there’s lots of technology, we won’t understand it.” But Warren Buffett is doing the opposite of this statement.
For the past few years, Warren Buffett has been increasing his interest in technology companies including HP . Here is the reason why Warren Buffett buy so much hp stock.
Warren Buffett’s Berkshire Hathaway started buying shares of technology company Apple in 2016. After this, in the coming years, Warren Buffett’s Berkshire Hathaway invested heavily in the iPhone maker Apple. Today Apple is the largest public holding in Berkshire Hathaway’s portfolio.
After Apple, now Warren Buffett’s Berkshire Tech company is investing a lot in HP. Warren Buffett’s special attention is going towards laptop and printer hardware company HP. Just last month Berkshire disclosed that it had bought nearly 121 million shares of laptop and printer hardware company HP( HPQ).
Those 121 million lions of HP are worth about $4.7 billion in value today. After Berkshire’s investment in HP, Berkshire has become HP’s largest shareholder with an 11.4% stake.
HP has a market cap of $41 billion, which isn’t even close to the market cap of Apple, Warren Buffett’s largest tech holding company. But HP is one of the biggest leading companies in the personal computer industry.
Laptop and Printer Hardware Company HP HPQ is a fast growing company. HP’s revenue grew 8.8% year over year to $17 billion in the first physical quarter. HP’s earnings per share are up 19.6% over the same period last year. HP’s earnings per share in Quarter 1 came in at $1.10.
Leading PC maker HP announced in March this year that it would acquire video and voice solutions company Poly for a cash transaction of $3.3 billion. This will accelerate HP’s growth strategy.
HP company is also returning cash to its investors. and is also paying a quarterly dividend of 25 cents per share. Apart from this, HP Company is also trying to buy back its shares.