Shares of Hewlett Packard $HPQ, the multinational computer and printer manufacturer company, are up as high as 15% in pre-market trading hours after Warren Buffett's Berkshire Hathaway $BRK.B$BRK.A disclosed they acquired a stake in the business valued at a whopping $4.2B (~121M shares).
This purchase marks Berkshire's third multibillion-dollar investment over the last month or so, after picking up $7.5B worth of Occidental Petroleum $OXY and their $11.6B takeover of Alleghany Insurance $Y.
A quote from the Financial Times reads as follows:
"The addition of HP stock to Berkshire’s portfolio signals that Buffett is still betting on corporate America and the US economy, even as Russia’s invasion of Ukraine raises the possibility of slower global growth and high inflation.
It marked a noticeable shift by a company that had largely sat out a spate of big dealmaking over the past six years as stock valuations soared. Buffett had complained about the lack of appealing investments as recently as February, writing to shareholders in his annual letter that he and his right-hand man Charlie Munger were finding “little that excites us”."
The disclosure on Wednesday with the SEC did not indicate whether Buffett made the investment in HP himself or if it was executed by one of the two portfolio managers on his team. The two managers, Todd Combs and Ted Weschler, oversaw just under a tenth of the company’s $351bn stock portfolio at the end of 2021, but Buffett has traditionally been the one to pull the trigger on larger transactions.
Hey guys! Here's the upcoming earnings calendar! Two of my holdings, $SE and $SOFI report next week, so I'll be paying significant attention to both. Other than that, I'm also interested in seeing what retailers like $TGT$BBY and $COST have to say about supply chain issues and inflation.
Good luck to everyone!
If you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.
In this week's Fincredible MacroTalk, we go over retailers' earnings calls to get a sense of the strength of the US consumer.
In the past few weeks, companies like $WMT, $TGT, and $BBY reported strong volume sales despite higher inflation, the end of government stimulus, and a shift in spending towards services. While these results appear to show a strong consumer and robust demand for goods, there's also the possibility that some of it can be attributed to early holiday shopping.
Here are four quotes on what these companies are seeing:
A very light earnings week up ahead. I'm mostly interested in Zoom $ZM. I think the stock's valuation is starting to make some sense if they can continue growing their paid user base or adding other features. I'm also interested in seeing what Best Buy $BBY has to say about the consumer demand for electronics and some comments on supply chain issues.
Remember, if you'd like an easier way to track earnings dates, you can automatically sync your portfolio's earning dates to your personal calendar with just a couple of clicks here.
Why would two companies announce on an American holiday when the markets not open, then why would you announce on the day after a holiday, when it's a short trading day. Some companies just make wonder about commonsense.
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