- Warren Buffett has bought nearly $400 million worth of Bank of America stock in the past few days, SEC filings show.
- The billionaire investor and Berkshire Hathaway boss snapped up about 16.4 million shares, raising his stake in the banking behemoth to 998 million shares or 11.5% of the total outstanding stock.
- Buffett has now invested roughly $1.2 billion in Bank of America in eight days, given he spent more than $800 million on its shares last week.
- “Bank of America is a well-oiled machine, trading at a very reasonable price,” Bill Brewster, a Berkshire shareholder who runs Sullimar Capital Group, told Business Insider in a recent interview.
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Warren Buffett has spent another $400 million on Bank of America stock after buying more than $800 million worth of it last week, Securities and Exchange Commission filings show.
The famed investor and Berkshire Hathaway CEO snapped up about 16.4 million shares at an average price of around $24.22 between Thursday last week and Monday, boosting his stake to 998 million shares or 11.5%.
Buffett bought about $813 million of Bank of America stock between Monday and Wednesday last week. He has now shelled out about $1.2 billion to to buy around 50.3 million of the bank’s shares in the past eight days, bolstering his position by about 5.3%.
Read more: Warren Buffett’s $800 million bet on Bank of America is almost a guaranteed winner, Berkshire Hathaway investor Bill Brewster says
Bank of America was Berkshire’s second-largest equity holding after Apple at last count. Berkshire’s stake is currently worth more than $24 billion, based on the bank’s closing stock price on Monday.
Buffett probably added to his position because Bank of America’s stock is down about 32% this year, and he expects the bank to fully recover from the coronavirus pandemic in time.
“Bank of America is a well-oiled machine, trading at a very reasonable price,” Bill Brewster, a Berkshire shareholder who runs Sullimar Capital Group, told Business Insider after the stock purchases last week.
“Buffett is looking at the long-term earnings power of the franchise,” he added.
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Berkshire’s latest move follows its $10 billion agreement to buy most of Dominion Energy’s natural-gas assets, and its apparent repurchase of more than $5 billion of its own stock between late April and July.
Buffett, who was fiercely criticized for not splashing Berkshire’s cash when markets tanked earlier this year, appears to be finding bargains once again.
