Skip to main content

Berkshire Sells $1.48B Bank of America Shares

 

Bank of America logo on its building

Berkshire Hathaway sold about 33.9 million shares of Bank of America for around $1.48 billion over multiple transactions this week, a regulatory filing showed.
After the sale, Berkshire owned about 999 million BofA shares.
Berkshire is one of the Charlotte, North Carolina-based lender's largest shareholder. It also invests in several other banks, including Wells Fargo & Co (WFC.N)]
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.

How did it impacted the market?


screenshot from yahoo finance of Bank of America's shares




, opens new ta and JPMorgan Chase (JPM.N)

Comments

Post a Comment

Popular posts from this blog

Famous Movie and TV Show Characters as Hedge Fund Managers: What Would Their Strategies Be?

  Introduction Have you ever wondered how your favorite movie and TV show characters would perform as hedge fund managers? In this fun and educational post, we'll explore the investment strategies of some iconic characters and see what lessons we can learn from them. By blending popular culture with finance, we can gain insights into different approaches to investing, all while being entertained. 1. Gordon Gekko (Wall Street): Strategy: Aggressive and opportunistic trading, focusing on short-term gains. Example: Imagine Gekko navigating a volatile market, making quick trades to capitalize on market fluctuations. Lesson: The importance of risk management and the potential pitfalls of greed. Gekko's mantra "Greed is good" can lead to significant gains but also substantial losses. 2. Tony Stark (Iron Man): Strategy: Innovative and tech-focused investments, particularly in startups and new technologies. Example: Picture Stark investing heavily in cutting-edge tech co...
Post a Comment
Read more