Berkshire still holds stake in BofA that is worth over $42 billion, making it one of the bank’s largest shareholders.
Warren Buffett’s Berkshire Hathaway
Warren Buffett’s Berkshire Hathaway sold about 34 million shares of Bank of America Corp. for $1.48 billion, as per a public filing. Berkshire still owns more than 998 million shares, valued at over $42 billion. This makes the conglomerate one of the bank’s largest shareholders. This comes as Bank of America stock has risen 7.9% in the month to date. Warren Buffett invested $5 billion in the bank in 2011 in exchange for preferred stock and the right to buy common shares.
The cash infusion quelled doubts about whether the bank had enough capital owing to which its shares soon surged. This created a massive paper profit for Berkshire Hathaway at the time. Buffett used those rights and additional share purchases to build up a stake that swelled into one of Berkshire’s largest stock holdings. The billionaire’s investment has also been a vote of confidence in bank’s chief executive officer Brian Moynihan.
Warren Buffett’s Berkshire Hathaway Inc. sold about 34 million shares of Bank of America Corp. for $1.48 billion, according to a public filing Friday. Berkshire still owns more than 998 million shares, valued at over $42 billion, making the conglomerate one of the bank’s largest shareholders, according to Bloomberg data.
Bank of America stock has risen 7.9% in the month to date. Buffett had invested $5 billion in the bank in 2011 in exchange for preferred stock and the right to buy common shares, providing a vital signal of confidence in the lender after the financial crisis. The cash infusion had quelled doubts about whether the bank had enough capital, and its shares soon surged, creating a massive paper profit for Berkshire.
Buffett eventually used those rights and additional share purchases to build up a stake that swelled into one of Berkshire’s largest stock holdings. The billionaire’s lengthy investment has also served as a vote of confidence in the stewardship of the bank’s chief executive officer, Brian Moynihan.
Warren Buffett’s Berkshire Hathaway has sold roughly 34 million shares of Bank of America for $1.48 billion, a US public filing said on Friday. Despite the sale, Berkshire still holds over 998 million shares worth over $42 billion, making it one of the bank’s largest shareholders, Bloomberg News reported. In 2011, Buffett had invested $5 billion in Bank of America, offering crucial support to the lender following the global financial crisis.
Warren Buffett had in the past sold stakes in several banks citing concerns over financial practices, and identified red flags, which led him to reduce exposure to the likes of JPMorgan, Goldman Sachs and Wells Fargo. Despite this, he had retained and even increased his stake in Bank of America.