Berkshire Hathaway said on Wednesday it had taken an 11% stake in computer and printer maker HP , worth $4.2 billion. Unfortunately for Warren Buffett, he looks more likely to repeat his experience with IBM than with Apple .
HP’s valuation of 9 times estimated earnings over the next 12 months appears cheap, and the company should return some $5 billion to investors this fiscal year. Buffett’s blessing has goosedIBM and Apple shares were both trading at a price-to-earnings discount to the S&P 500 when Berkshire bought shares in the companies in 2011 and 2016 respectively. Berkshire has earned over $100 billion on Apple.
. The exit was largely a wash, but the S&P 500 Index more than doubled during Buffett’s IBM ownership.The difference was revenue. After Berkshire bought shares, Apple sales grew 70% as the company introduced new products. By contrast, revenue shrank at fading IBM. Analysts think HP sales should remain stable over the next few years, according to Refinitiv. But PC and printer sales are mature. If they start shrinking, this could be another opportunity squandered.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
Binance.US completes $200M seed round to hit $4.5B valuationLike Michael Jordan’s first comeback, BinanceUS is wearing $4.5B. The American partner of Binance reached the milestone after receiving $200 million in a seed round.
Weiterlesen »
Buffett's Berkshire reveals stake in HP; shares surge almost 10%Berkshire Hathaway Inc disclosed on Wednesday that it has purchased nearly 121 million shares of HP Inc , the latest in a series of large investments by the conglomerate controlled by billionaire Warren Buffett.
Weiterlesen »
Apple Just Announced Its Big Annual Conference Starts June 6, New iPhone Software ExpectedApple usually unveils new iPhone, iPad, Apple Watch, Apple TV and Mac software at a presentation on the first day of WWDC.
Weiterlesen »
EXCLUSIVE Canada C$15 bln fund to attract private investment in technologies -sourceCanada will earmark C$15 billion ($12 billion) over five years for a Growth Fund to attract private investment in new and green technologies, a senior government source said on Wednesday, a day before this year's budget presentation.
Weiterlesen »
6 Exciting New Things to Look for at Nationals Park 2022 SeasonNew concessions, sportsbook betting, mobile ordering services, and more.
Weiterlesen »
JACK releases its sports-betting app for free play (without money involved) in anticipation of real thingJACK Entertainment, which runs Jack Cleveland Casino, launched the betJACK sports betting app on Tuesday.
Weiterlesen »