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A Bank of America branch location in Eagan, Minnesota.

Berkshire Hathaway Buys $813 Million Worth of Bank of America Shares

  • Warren Buffett’s Berkshire Hathaway bought nearly $813 million in Bank of America shares.
  • According to a regulatory filing Wednesday, Berkshire bought about 33.9 million of the company’s stocks this week, raising its position by more than 3 percent to about 981.7 million shares.
  • This was Berkshire’s second-largest by market value at the end of March, behind Apple, Inc.
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Warren Buffett’s Berkshire Hathaway ($BRKA) bought nearly $813 million in Bank of America ($BAC) shares, pouring more funds into the lender in the middle of the bank’s 31 percent drop this year.

According to a regulatory filing Wednesday, Berkshire bought about 33.9 million of the company’s stocks this week, raising its position by more than 3 percent to about 981.7 million shares. Buffett’s conglomerate added the shares at an average price of $23.99.

Berkshire is ramping up its bet on Bank of America after gaining the Federal Reserve’s green light when its stakes reached a 10 percent ownership mark, a crucial threshold that needs regulatory scrutiny. Last year, Buffett asked policymakers for permission to raise the stake, and a spokesperson said the Federal Reserve Bank of Richmond released a letter of no-objection on April 20.

The Bank of America stake of Berkshire, which began from preferred stock and warrants, has developed into one of the largest holdings of the Omaha, Nebraska-based conglomerate. This was Berkshire’s second-largest by market value at the end of March, behind Apple, Inc.

Investing in several banks, Berkshire slashed some of those stakes in the first quarter, including wagers on Goldman Sachs Group Inc. and JPMorgan Chase & Co. The firm will announce second-quarter developments to those stakes in the coming month.

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[Yahoo! Finance]

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