SUMMARY
- Berkshire Hathaway sells 10.3 million HP shares in quick succession.
- Current holdings still robust at 110.6 million shares, valued at $3 billion.
- Experts speculate increased market activity and possible strategic shift by Buffett.
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Berkshire Hathaway has been making some headlines in the finance world. They've recently offloaded 4.8 million HP Inc. shares, fetching a cool $130 million. This isn't the first time they're hitting the sell button, though. Just a few days earlier, they parted with 5.5 million shares, pocketing about $160 million.
So, what's left in their kitty? Berkshire Hathaway is still quite invested in HP. They're holding onto 110.6 million shares, which, if you're doing the math, is worth a staggering $3 billion. This translates to an 11.2% interest in HP, which saw its shares dip a tad by 0.1%, ending at $26.77 recently.
The big question on everyone's mind is: Why is Berkshire selling? After all, they just began accumulating HP stock in early 2022, completing their acquisition in April. There's chatter that these sales might indicate a strategic shift by Warren Buffett, the big boss at Berkshire. In the last year, he's notably dialed down investments in companies like U.S. Bancorp and Bank of New York Mellon.
One thing to note is that Buffett likes to move silently in the stock market. But given that Berkshire's stake in HP is over 10%, any sale or purchase has to be reported to the SEC pretty quickly. To evade this spotlight, they'd need to cut their shares to below 99 million from the current 110 million.
Financial pundits believe that Berkshire is incurring a loss with these sales, having acquired HP shares at a higher price. After these sales, experts, like Evercore ISI analyst Amit Daryanani, have highlighted HP's recent challenges, leading to a reduced fiscal outlook. This has everyone wondering if more sales are on the horizon, especially given Berkshire's increased activity in the stock market recently.
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