Why Is Buffett Giving Up on HP? | HPQ Stock Analysis

Miller Robert Hall Gary Moore Ronald

Insider selling and not buying says that the management no longer believes. HP used to be an innovator now it is stagnant and no longer innovates anything. It is not run by engineers it is run by MBA types which tends to limit growth with limited investment in RnD. MBA types and engineers are like oil and water, it takes good management to emulsify things.

I have given up on HP after I bought hp spectre, supposedly premium laptop. There was so many problems with it.

I think you were too optimistic on the Estimated Growth Rate on your valuation analysis. I think that on the "Low" scenario you should include some negative numbers, which is what the company have being doing in the last 10 years. On the medium, maybe you can put 0% growth, and on the high-end, I find your explanation quite reasonable, that maybe they grow on the same pace as their market. But for that scenario to happen, some big changes in the company would need to be made, like a turnaround for example, which is possible to happen as well.

maybe buffett made a mistake.

Awesome video. Hit every topic nicely. 2 years to pay off all debt is way conservative but can’t hate for being extra conservative. Keep up the good work

They make great laptops, whats gone wrong?

Hello! Can you record a video unboxing your investment portfolio? It could be so educational☺️

Another good vid, can you do an analysis on SHOP, PANW, and LLY or some other pharmaceutical companies? These are all unrelated, but they’re stocks I’ve been seeing rapid growth on. Quality stuff here, appreciate it👍

Working in IT, I have heard many times that HP means Hardware Problems

I don’t own it and I don’t know the sector but from the outside it seems DELL is doing a (much) better job.

I dont like the growth rates used in the DCF analysis. 3% should maybe have been the high scenario especially since HPQ has discontinued buybacks.

Really appreciate your lessons, you sharing your thought processes.
I’m down 20pct my HPQ, looking for an exit.

My concern about HP, in spite of being undervalued, is - does it have a moat? What are the products that I would specifically go to HP to buy? Can I not get similar products from other companies? What is the company working on in the future that differentiates it from other companies?

Thanks!

You are the best as always!

Thanks. Great video what is the desired rate of return for your valuation?