“Stock God” Buffett spent $4.2 billion to buy HP! Since the beginning of this year, $21.4 billion has bought stocks of 3 companies.
“Stock God” Buffett's investment enthusiasm was ignited. After frantically buying oil stocks and buying insurance companies, Buffett made another move to increase his position in the technology company Hewlett-Packard. So far this year, he has bought $4.2 billion worth of Hewlett-Packard shares.
Buffett, who once said in a letter to shareholders that there are “no votes to buy”, traded a total of $21.4 billion in three companies in four months.
Continuous addition of HP
On April 6, Buffett's Berkshire Hathaway filed with the U.S. Securities and Exchange Commission (SEC) showing that between April 4 and April 6, Buffett bought a total of $399 million. Hewlett-Packard Company 11.1336 million shares, the purchase price is 34.88 US dollars / share to 36.43 US dollars / share.
Berkshire Hathaway, which previously held 110 million shares of HP, bought nearly 121 million shares this week, or 11.4 percent of HP. The shares are worth about $4.2 billion at HP's closing price of $34.91 on April 6. Affected by this news, Hewlett-Packard's shares rose 9.94% to $38.38 per share in after-hours trading today.
According to Berkshire's 13F quarterly report data disclosed at the beginning of the year, as of December 31, 2021, Buffett did not hold shares in Hewlett-Packard. This means that this year, HP has gradually become attractive in the eyes of “stock gods”.
After the sharp rise in HP's stock price in 2021, it has continued to fluctuate recently. Since the beginning of this year, it has fallen by 6.68%.
This week's increase in HP has become Berkshire's other major investment since February 26 this year, and it is also Buffett's latest “bet” on technology companies. Previously, Buffett had invested in Apple, IBM and other technology companies, and his investment in Apple brought him a return of more than 100 billion US dollars.
The $21.4 billion blockbuster deal
Previously, Buffett said in his 2022 letter to shareholders that he could not find exciting investment opportunities in the stock market. But since this year, Buffett has made frequent moves, and the transactions of the three companies total about 21.4 billion US dollars.
Since the end of February this year, Buffett has spent a total of US$5.6 billion to increase his stake in Occidental Petroleum for three consecutive weeks, holding a total of 136.4 million shares, accounting for 14.6% of Occidental's total shares.
On March 6, Buffett revealed in an interview that he decided to increase his stake in Occidental Petroleum after reading the full transcript of the company's fourth-quarter earnings meeting on February 25, saying the company was “doing the right thing. “.
On March 20, Buffett announced the acquisition of insurance company Alleghany for $11.6 billion in cash, a move that expanded Berkshire's portfolio of insurance companies including Geico and General Re.
Before announcing the Alleghany acquisition, Buffett had not made a major acquisition for six years. In his 2022 letter to shareholders, Buffett said Berkshire has $144 billion in cash and cash equivalents and pledged to keep at least $30 billion in cash on hand.
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