The 92-year-old American billionaire investor, entrepreneur and philanthropist, Warren Buffet’s multinational conglomerate holding company Berkshire Hathaway had thrown away more than $2.07 billion on BofA shares since mid-July following a regulatory approval for the company to increase its stakes what appeared to have become its largest common stock holding but Apple Inc., while as of Tuesday’s market closure Berkshire Hathaway held 11.9 per cent stakes on Bank of American Corp.
In point of fact, in a regulatory filing late on Tuesday, the Omaha, Nebraska-based American multinational holding conglomerate company was quoted saying that it had laid off $337 million for roughly 13.6 million common stocks of BofA between July 31 and August 4, while market data had revealed that Berkshire had spent more than $2.07 as beforementioned to purchase 85.1 million BofA common stocks since July 20 that in effect had proffered the Omaha-headquartered conglomerate 11.9 per cent stake in Bank of America Corp., worth of a whooping upsum of $25.8 billion as of Tuesday’s Wall St.
Berkshire in aggressive buying mode for BofA shares as trading revenue bet pays off
In factuality, Berkshire Hathaway had been the Charlotte-based lender’s largest common stock holder, but following winning a regulatory approval to increase its holdings of common stocks up to 25 per cent of company stake, Berkshire had begun to purchase BofA stocks aggressively.
Besides, latest announcement from Berkshire Hathaway followed an approval of Berkshire’s application to the Federal Reserve Bank of Richmond to heighten up its BofA stake as much as to 24.9 per cent, roughly 150 per cent of the usual 10% cap for the common investors.
Notably, Buffet’s bet on BofA appeared to have paid off since almost all of the major US lenders had returned a notable operating profit over the pandemic-scarred second quarter of the year due to an intransigent influx of the trading revenues.
Warren Buffet had begun to invest on BofA back in the 2011s with purchase of $5 billion worth of preferred stocks following fiscal warrants that his Berkshire Hathaway would be allowed to purchase up to 700 million common stocks.