What happened
HP's (NYSE: HPQ) share price is rising sharply this morning after investors found out that Warren Buffett's Berkshire Hathaway recently took an 11% stake in the personal computer and printer company.
The tech stock is up by 16.3% as of 10:47 a.m. ET.
So what
Berkshire Hathaway revealed in an SEC filing yesterday that it had purchased about 121 million shares of HP. That massive purchase now makes Warren Buffett's company the largest shareholder of HP.
The move comes on the heels of Berkshire Hathaway's acquiring the insurance company Alleghany for $11.6 billion.
When Buffett's company snatches up a significant portion of a company's stock or makes an acquisition, investors often pay close attention because of Buffett's proven track record as a successful investor.
Additionally, the fact that Berkshire bought shares of a technology company -- technology being a sector that Buffett typically stayed away from for many years (before buying Apple stock about six years ago) -- is likely causing additional enthusiasm from HP investors.
Now what
It's no surprise that HP investors are excited about this latest development. When Buffett's Berkshire invests in a company, it often signals to other investors that buying shares of the company could be a good long-term investment strategy.
With today's huge share price jump, HP's stock has gained a very impressive 47% over the past six months. And with Berkshire now HP's largest shareholder, investors are hoping that they have more to look forward to in the coming years.
