Should You Follow Warren Buffett and Buy HP Stock?
As the markets fell in the first quarter of the year, Warren Buffett's Berkshire Hathaway continued to put money to work in several stocks. One of the largest new positions in the portfolio was computer hardware leader HP (NYSE: HPQ).
Keep in mind that Berkshire has two investing deputies -- Todd Combs and Ted Weschler -- who oversee about 10% of the company's equity investments, so it's possible HP could have been purchased by either of these guru investors. But it's just as likely that HP was bought by the Oracle himself. It's a leader in the computer hardware market that has all the hallmarks of what Buffett looks for these days in a stock, including savvy capital allocation by management and shareholder-friendly capital returns. HP has been returning all of its free cash flow to shareholders through dividends and share repurchases.
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Source Fool.com
