(SEC) Shares of HP Inc. rose more than 14% on Wednesday in premarket after news emerged that Berkshire Hathaway bought $4.2 billion worth of shares in the company.
The purchase involved 121 million shares of HP and was the third that the Warren Buffet company has bought in about a month.
The latest stock addition is seen to underline Buffet’s confidence in corporate America and the US economy despite a spiraling inflation and growth concerns due to the Ukrainian crisis.
The continued stock buys occur a few months after Buffet and his right-hand man Charlie Munger complained of lack of appealing stock opportunities as valuations went over the roof.
A volatile stretch in stock markets that saw shares touch bottoms from the prior year’s record highs is believed to be a major driver for Berkshire’s growing appetite.
The latest purchase means that Berkshire is now the largest shareholder of HP.
HPQ: NYSE is up +14.64%, BRK.A: NYSE is down -0.014%
