Berkshire’s large stake in HP supports Best Buy’s view, says Corrie Barry

Berkshire Hathaway’s large stake in HP continues to grab the business world's attention.

Best Buy’s chief executive Corie Barry told CNBC’s Jim Cramer on Thursday that Berkshire Hathaway’s large stake in HP aligns with the company’s views of the market.

According to Barry, the company’s viewpoint is that consumer demand for upgrades to their technology will sustain. She said;

“I can’t tell you what [Berkshire CEO] Warren Buffet’s thinking, but I think his investment exemplifies our general point, which is, people are going to use technology more than ever, and they’re going to want to upgrade technology more than ever.”

HP is one of the largest computer manufacturers in the world. According to securities filings, Berkshire purchased almost 121 million shares of HP, or around an 11% holding.

The news has seen HP’s stock rally by more than 14% since the news broke out on Thursday. The Best Buy CEO added that;

“We are already seeing upgrade cycles shorten for our customers in areas like computing and home theater. So people are interested in this new tech.”

She added that the adoption of hybrid working conditions prompts more people to upgrade their technologies to enable them to easily transfer work from home and office. Barry said;

“You need those things to work together. I need to be able to bring my work computer home and have it work on my home network and my home printer. And then I’m going to need to take my home iPad to work, so I can see the content while I’m in a meeting. All of those things constantly work together, and you’re going to continue to want to upgrade those.”

Innovation in the industry is needed as the market continues to evolve. She concluded that;

“So, this idea of constant innovation in our industry is actually probably one of the least understood factors.”