Berkshire Hathaway (NYSE: BRK.A) has recently offloaded a substantial 3.1 million shares of HP Inc. (NYSE: HPQ), at an average price of $26.2 per share for a total of $80.4 million (Pre Tax).
This development follows a larger trend, as the Oracle of Omaha, Warren Buffett, has been systematically reducing his stake in the technology giant over the past four weeks. The numbers tell a compelling story: a total of 23 million shares, valued at a staggering $630 million, have been liquidated by Berkshire Hathaway.
Notably, this has brought Buffett’s ownership in HP Inc. to below the 10% threshold. Observers and market enthusiasts are keenly watching this move, speculating on the reasons behind Buffett’s decision to trim his position.
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Is Buffett adjusting positions?
One astute commentator on Twitter offered an intriguing perspective, suggesting: “He is just adjusting positions, he has a key rule of having <10% ownership of any company, and also he frees up some fresh cash to buy extraordinary assets at good market prices. Dividend King.”
Buffett’s reputation as a shrewd investor precedes him, and his portfolio adjustments are often seen as strategic chess moves in the landscape of the stock market.Â
As HPQ currently trades at $26.23, marking a decline of $3.90 (-12.94%) in the past month, market analysts are closely monitoring how this development will impact both Berkshire Hathaway and the overall sentiment surrounding HP Inc.
The question is now whether Warren Buffett will continue to reduce the holding as he has done with U.S. Bancorp and Bank of New York Mellon in the past year.
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