Home / Business / Buffett’s Berkshire bought $ 2.07 billion worth of BofA shares since mid-July, holding 11.9% of the shares

Buffett’s Berkshire bought $ 2.07 billion worth of BofA shares since mid-July, holding 11.9% of the shares



By Jonathan Stempel

In a legislative application on Tuesday night, Berkshire said it paid $ 337 million for about 13.6 million Bank of America shares between July 31 and August 4.

It has bought about 85.1 million of the bank’s shares since July 20, giving a total of 1.03 billion shares, or 11.9%, worth $ 25.8 billion as of the end of Tuesday.

Buffett’s assistant did not immediately respond to a request for comment on Wednesday. Bank of America did not immediately respond to similar requests.

In April, the Federal Reserve Bank of Richmond approved Berkshire’s application to increase its Bank of America stake as high as 24.9%, more than twice the usual 10% limit for investors, according to a Richmond Fed spokesman.

Berkshire must apply to become a bank holding company to increase its stake beyond 24.9%.

Buffett began investing in Bank of America in 2011 and bought $ 5 billion in preferred shares plus warrants to buy 700 million common stock, while many investors worried about the bank’s capital needs.

Berkshire exercised the warrants in 2017 and sold preference shares to cover the cost.

Adding Bank of America shares helps Berkshire reduce its cash share, which stood at $ 137.2 billion on March 31.

Berkshire is expected to report second-quarter results on Saturday.

(Reporting by Jonathan Stempel in New York; editing by Jonathan Oatis)


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