- Warren Buffett disbursed more than $ 800 million in Bank of America shares this week.
- The billionaire investor and Berkshire Hathaway chief bought nearly 34 million shares, raising his stake in the bank to approximately 11.3%, SEC filings show.
- Bank of America shares have fallen 32% this year, suggesting that Buffett decided to add one of his largest discounted holdings.
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Warren Buffett bought more than $ 800 million in Bank of America shares this week, increasing his stake in the northern bank titan by 11%, SEC filings show.
The famous Berkshire Hathaway investor and CEO acquired almost 34 million shares at an average price of around $ 24 between Monday and Wednesday, which means he spent around $ 813 million.
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The purchases increased Berkshire’s stake in the bank titan by approximately 3.6% to almost 982 million shares, or 11.3% of the company.
Bank of America was Berkshire’s second-largest dollar-value holding at the end of March, after Apple.
Berkshire’s largest stake is worth approximately $ 23.9 billion, based on the Bank of America’s stock price of $ 24.31 as of Wednesday’s close.
The bank’s shares have fallen 32% this year, which means Berkshire’s stake would have been worth around $ 35 billion in early January.
Read more: Wall Street’s biggest influencer says Warren Buffett may seem “out of touch”, but that’s a key element of his success
Buffett has come under fire in recent weeks for failing to deploy Berkshire’s massive cash hoard, which rose to $ 137 billion in the first quarter of this year.
However, Berkshire struck a $ 10 billion deal to acquire the majority of Dominion Energy’s natural gas assets earlier this month, and appears to have repurchased between $ 5 billion and $ 6 billion of its shares between late April and early July.
Buffett’s biggest gamble at Bank of America indicates that he is actively seeking bargains again and is willing to increase his existing holdings at the right price.
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