The Oracle Strikes Again: The Stocks Warren Buffett Is Betting On

Warren Buffett

In recent years, it has been somewhat quiet around the star investor Warren Buffett, but this year that seems to have changed abruptly.

In March, Buffett and his investment company Berkshire Hathaway (BRK.B) acquired the insurer Alleghany for $11.6 billion and subsequently also acquired Occidental Petroleum for $7.5 billion.

Buying Spree Enters Next Phase In April

In April, the buying spree of the now 91-year-old continued.

The laptop and printer manufacturer Hewlett Packard (HPQ) seems to have found his interest. He invested $4.2 billion for 121 million shares in the company, which is often cited as a beneficiary of COVID-19. 

Thus, the old master secured 11% of HP shares and the position is his 12th largest. His top three are still Apple (AAPL), Bank of America (BAC) and American Express (AXP).

Share Price Doubled In The Last Two Years

HP, like many of the technology stocks on the Nasdaq, has come under pressure in recent weeks and months.

Currently, it stands at about $37. However, the share has definitely had a run in the last two years, as in May 2020 it was as low as $15.

Decent Figures

Furthermore, the company has recently reported decent figures and generates a much larger net profit per dollar of sales than the competition.

After the news of Buffett’s entry, the share went up by 18%, which proves that the Oracle of Omaha still has many followers and interested parties.

Buffett once said, “Buy companies with a good profit history and a dominant market position.” That’s certainly true of HP.

Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.
Dr. Gregor Bauer
Dr. Gregor Bauer
Dr. Gregor Bauer credits his trading success to combining fundamental aspects of a trade with expert technical analysis. A Certified Financial Technician from the International Federation of Technical Analysts (IFTA), he’s rated as one of Germany’s top 300 economic experts.

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