Warren Buffet has been sitting on a mountain of cash for years. Due to record highs in the stock market, he had a hard time finding deals.
As many other investors are in the process of selling, he is taking the opportunity to shop.
As of yesterday, Buffett’s Berkshire Hathaway disclosed its purchase of almost 121 million shares of HP worth $4.2 billion worth of stocks, giving it a stake of more than 11% in the technology company.
In premarket trading on Thursday, HP (HPQ) shares rose 14%.
Buffett has made a string of large investments in the past month.
As recently as March, Berkshire increased its stake in Occidental Petroleum (OXY) and announced a $11.6 billion agreement to purchase Alleghany Corporation, an insurance company.
Buffett is chairman and largest shareholder of Berkshire Hathaway, a group of investment companies that has seen market value rise 20% annually since 1965.
Dairy Queen and Clayton Homes are part of the Omaha-based firm, which also owns Coca-Cola and American Express.
Nebraskan, Warren Buffett showed a flair for making money young by selling candy and magazines door-to-door and delivering newspapers.
At age 11, he purchased his first stock from the New York Stock Exchange: three preferred shares of Cities Service. Following the publication of Benjamin Graham and David Dodd’s book Arcadia, he applied to Columbia University
Among the courses taught there was “The Intelligent Investor.” Following a master’s degree in economics, he worked as a securities analyst and stockbroker before founding the Buffett Partnership.
Berkshire Hathaway, a manufacturer of distressed textiles, was acquired by him in 1962. He eventually became its chairman and used it as a holding company. Since then, he has returned over 20% compounded annually.
As a buy-and-hold value investor, Buffett typically invests in – or buys outright – companies whose business operations he believes are easily understood.
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