Berkshire Hathaway Continues to Sell HP Shares, Reducing Its Stake to 5.2%

Warren Buffett's conglomerate, Berkshire Hathaway, has disclosed a reduction in its stake in HP to 5.2%, as revealed in a regulatory filing on Monday night. This move follows a nine-day selling streak from mid-September to early October, during which the conglomerate decreased its position in the printer and PC maker to approximately 10%. Subsequently, HP's shares experienced a more than 1% decline in after-hours trading on Monday.

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Despite the reduction, Berkshire Hathaway still retains ownership of 51.5 million shares of HP, valued at around $1.6 billion based on Monday's closing price of $30.37. The investment giant remains the third-largest institutional shareholder of HP, trailing behind BlackRock and Vanguard, according to data.

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HP recently provided first-quarter profit guidance that fell below Wall Street estimates, as reported by LSEG (formerly Refinitiv). However, the company maintained its full-year earnings outlook, indicating optimism about potential recovery in the personal computers market.

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Berkshire Hathaway initially entered the tech hardware stock in April 2022. However, the investment has not yielded significant returns, as the stock is still below its initial purchase level. HP shares have seen a 13% increase this year, underperforming the broader market represented by the Nasdaq Composite, which has posted a nearly 38% gain.

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Observant followers of Warren Buffett had already speculated about his potential intention to divest the entire stake. The 93-year-old investment icon has a distinctive approach to stock holdings, viewing them as ownership stakes in businesses.

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Consequently, he typically closes out a position entirely once he begins selling, adhering to his philosophy that parallels his approach to acquiring full ownership of a business: "We don't trim positions. That's just not the way we approach it any more than if we buy 100% of a business," he previously emphasized.