Bank of America is Warren Buffett’s favorite bank.
Berkshire Hathaway (ticker: BRK.B) took in 33.9 million shares last week, paying around $ 810 million, an average price of around $ 24 per share. The stock, which ended Friday at $ 24.35, up 5% on the week, is off 31% this year and has lagged the stock market as it resumed March lows. .
Profits are depressed by large provisions for loan losses. Buffett could look at potentially higher earnings in 2021, when the consensus is $ 2.15 a share. The stock returns nearly 3%.
Berkshire now owns 981.6 million Bank of America shares worth around $ 24 billion, making it the company’s second-largest stake behind Apple (AAPL). Buffett, CEO of Berkshire, praised both the bank and its CEO, Brian Moynihan. Buffett is a big fan of bank stocks, with Berkshire holding stakes in Wells Fargo (WFC), JPMorgan, Bank of New York Mellon (BK) and US Bancorp (USB).
Berkshire now owns an 11.3% stake in Bank of America. Berkshire obtained approval earlier this year from the Federal Reserve Bank of Richmond to increase its stake above 10%, the normal limit for investor participation in banks. After this stage, purchases should be reported promptly. Buffett must like the stock because he prefers to keep his buying and selling quiet for as long as possible.
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