Berkshire Hathaway Reveals $4 Billion Stake in HP

Warren Buffett's Berkshire Hathaway holds more than 11% stake in computer and printer maker HP, making a new foray into computing by former technology-shy billionaires. 

After long expressing concern about investing in technology, 91-year-old Buffett has recently dominated two other well-known technology brands starting with an ill-fated bet on International Business Machines Corp before making a successful investment in Apple Inc.

This investment makes Berkshire the sole largest shareholder in HP. HP’s shares rose 11% in early pre-market trading on Thursday. The class B shares of Berkshire were down 0.4%. 

HP, based in Palo Alto, California, raised its full-year earnings outlook in late February. It reported strong sales of computers to businesses in the first three months of the fiscal year but warned that Russia's invasion of Ukraine would have a negative impact on the second quarter.

Last month, the company also agreed to buy Poly, a maker of workplace communications products, for $1.7 billion in a bet on the rise of hybrid work. 

HP also has a long history, back to 1939 when its predecessor Hewlett Packard Co. was founded in a Palo Alto garage. It was split into two ventures in 2015, with its business-focused division becoming the separately traded Hewlett Packard Enterprise Co.