Friday, November 22, 2024
Business

Warren Buffett’s Berkshire Hathaway sells 34 million Bank of America shares

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.

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