Berkshire Hathaway Sells $1.48 Billion Worth of BOA Shares
Warren Buffett's Berkshire Hathaway sold approximately 34 million shares of Bank of America Corp. for $1.48 billion.
According to a public filing, Warren Buffett’s Berkshire Hathaway sold about 34 million shares of Bank of America Corp. for $1.48 billion.
Despite this sale, Berkshire still owns more than 998 million shares, valued at over $42 billion, making the conglomerate one of the bank’s largest shareholders. This sale comes as Bank of America stock has risen 7.9% in the month to date.
Historical Investment and Impact:
Warren Buffett invested $5 billion in Bank of America in 2011 in exchange for best stock and the right to buy common shares.
The cash infusion quelled doubts about the bank’s capital, leading to a surge in its shares. This move created a massive paper profit for Berkshire Hathaway at the time.
Building a Significant Stake:
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 of America’s chief executive officer, Brian Moynihan.
