BAC

Warren Buffett Invests Almost $400 Million More in Bank of America

The Oracle of Omaha is bullish on Bank of America (NYSE: BAC). That much is clear.

Days after revealing that he had invested another $813 million in one of the country's largest banks, Warren Buffett's Berkshire Hathaway (NYSE: BRK.A) wheeled around and invested almost $400 million more in it.

Buffett bought that earlier Bank of America stake between July 20 and July 22 at share prices ranging from $23.50 to $24.20. He added the next batch between July 23 and July 27 at share prices ranging from roughly $24.10 to roughly $24.30.

Warren Buffett

Image Source: Getty

Those recent buys bring Berkshire Hathaway's total ownership stake in Bank of America to about $24.2 billion and more than 998 million shares -- roughly 11.4% of its shares outstanding.

Many market observers have wondered if Buffett was being too conservative in the wake of the sharp decrease in equities that occurred this spring as a result of the coronavirus pandemic -- especially given that Berkshire Hathaway had in prior years built up a cash hoard of $128 billion.

Berkshire began to deploy some of that capital earlier this month when it purchased the natural gas assets of Dominion Energy (NYSE: D) for $9.7 billion. 

Bank of America delivered its second-quarter earnings results on July 16, reporting a profit of roughly $3.5 billion. That was down from $4 billion in the first quarter of the year, and well off the $7.3 billion it earned in Q2 2019, declines largely driven by its moves to bolster its loan-loss provisioning in light of the U.S. recession.

Buffett and Berkshire have taken a somewhat mixed approach to bank stocks this year. The conglomerate decreased its position in Wells Fargo (NYSE: WFC), and dumped most of its stake in Goldman Sachs (NYSE: GS), but increased its stake in PNC Financial Services Group (NYSE: PNC) and now Bank of America.

10 stocks we like better than Berkshire Hathaway (A shares)
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Berkshire Hathaway (A shares) wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

 

*Stock Advisor returns as of June 2, 2020

 

Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool recommends Dominion Energy, Inc. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Tags

More Related Articles

Info icon

This data feed is not available at this time.

Sign up for the TradeTalks newsletter to receive your weekly dose of trading news, trends and education. Delivered Wednesdays.