Berkshire Sells Close To $1.5 Billion Of Bank Of America Shares
Berkshire still owns more than 998 million shares, valued at over $42 billion, making it one of the bank’s largest shareholders.
(Bloomberg) -- 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.
--With assistance from Hari Govind.
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