Berkshire Hathawayis approximately investment of $4.2 billion in hp inc. supports Best BuyThe view is that consumer demand for upgrades to its technology will continue, CEO Corie Barry told CNBC’s Jim Cramer on Thursday.
“I can’t tell you what [Berkshire CEO] Warren Buffet’s thinking, but I think his investment exemplifies our general point, which is that people will use technology more than ever and want to upgrade technology more than ever,” Barry said in an interview on “bad money.”
“We’re already seeing upgrade cycles shorten for our customers in areas like computing and home theater. So people are interested in this new technology,” he added.
berkshire bought nearly 121 million HP shares, or about an 11% stake, according to securities filings.
HP shares rose 14.75% on Thursday after the news.
Barry also said that the permanence of hybrid work means consumers want comprehensive technology systems that can be easily transferred between their work and home offices.
“Those things need to work together. I need to be able to take my work computer home and have it work on my home network and my home printer. And then I’ll need to take my iPad from home to work so I can see the content while I’m in a meeting. All of those things work together constantly, and you’ll keep wanting to update them.”
“So this idea of constant innovation in our industry is probably one of the most misunderstood factors,” he added.
Shares of Best Buy rose 1.11% on Thursday.
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