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• Berkshire holds about 121 million shares in personal computer maker
• HP has benefited from demand for PCs in remote-work era
HP Inc’s (NYSE: HPQ) surged on Thursday to a record high after billionaire Warren Buffett’s Berkshire Hathaway Inc (NYSE: BRKa) said it had purchased an 11.4% stake in the personal computer maker worth about $4.2 billion.
In a regulatory filing to the SEC, published on Wednesday night, Berkshire revealed that it owned nearly 121 million HP shares, including 11.1 million purchased this week.
Shares of HP closed up 14.8% at $40.06 after earlier rising to $41.47 in New York trading.
Companies’ stock prices often jump when Berkshire discloses new stakes, which Wall Street regards as a stamp of approval from Buffett.
Berkshire is searching for ways to deploy some of its near-record cash pile after years of being stifled by high valuations and a competitive dealmaking landscape.
Moreover, Buffett does not regularly invest in technology companies. However, HP has benefited from sustained increased demand for personal computers amid a shift to a hybrid work scenario.
The PC maker expects the market to be worth as much as $560 billion by 2024.
“Berkshire Hathaway is one of the world’s most respected investors, and we welcome them as an investor,” an HP spokesperson told Yahoo Finance.
Last month, the Palo Alto, California-based company signed a $1.7 billion deal to acquire audio and video accessories maker Poly (NYSE: POLY), once known as Plantronics Inc, to better market their products for the people who are working from home or in a hybrid workplace.
Buffett’s Berkshire bought a $161.2 billion stake in Apple Inc (NASDAQ: AAPL) last year. The billionaire considers the iPhone maker more of a consumer company that he can understand than a tech company.