HP Inc stock surged 12% after Warren Buffett’s Berkshire Hathaway acquired a stake in the company valued at $4.2 billion, according to a report from SEC on Wednesday.

  • The purchase of 121 million HP shares was Berkshire’s third multibillion-dollar investment in nearly a month after its $11.6B takeover of insurer Alleghany and acquisition of Occidental Petroleum shares worth over $7.5B.
  • The addition of HP stock to Berkshire’s portfolio indicates that Buffet is still optimistic about corporate America and the US economy despite Russia’s invasion of Ukraine slowing global growth.
  • The move marked a huge shift by a company that had largely sat out a number of big dealmaking in the last six years as stock valuations surged.

Buffet claimed a lack of appealing investments in February, indicating in his annual letter that he and his right-hand man Charlie Munger were struggling to find exciting investments. HPQ: NYSE is up +11.74%, Pre-market trading