Warren Buffett's Berkshire Hathaway further trims HP stake to 5.2%

File image of billionaire financier and Berkshire Hathaway CEO Warren Buffett (Reuters)

Berkshire Hathaway has further slashed its stake in HP Inc, bringing down its cumulative shareholding in the computer and printer-maker to 5.2 percent, as per a regulatory filing released by billionaire Warren Buffet's investing giant late on December 11.

At the end of November, Berkshire owned 51.5 million shares of HP, according to the filing submitted before the US Securities and Exchange Commission. The stake is worth around $1.6 billion, as per the last closing price of $30.37 per share.

Berkshire has halved its stake in HP as compared to September-end, when it owned 102.5 million shares, equivalent to 10 percent of the overall stake.

The Omaha-based investment conglomerate had begun reducing its bet from June onwards, when it held 121 million shares, equivalent to about 12 percent stake, in the tech firm.

Also Read: Warren Buffett’s Berkshire exits bet on General Motors

Even as it has trimmed its stake to 5.2 percent in HP, Berkshire continues to remain the third-largest institutional shareholder in the company, behind BlackRock and Vanguard, as per FactSet.

Notably, Berkshire has been a net seller of equities in the calendar year so far. The company amassed $23.6 billion from stock sales between January and September, Bloomberg reported last month.

In the case of Berkshire reducing its stake in HP, experts suggest that Buffett may be doing more than just trimming the investment. The famed investor, however, does not comment on stock sales like this any more than what he is required to disclose as he does not want to tip his hand while Berkshire might still be selling, a report in the Associated Press stated.

Throughout his investment career, Buffett has famously resisted investing in tech companies as he said he could not confidently pick out the long-term winners. But in recent years, Berkshire has bought a massive stake in Apple that ranks as the largest investment in its $350 billion portfolio. Buffett has said he considers Apple a consumer products company with extremely loyal customers, and he can understand that kind of business.

(With AP inputs)