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

The Omaha Oracle is optimistic about Bank of America (NYSE: BAC). That’s 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) He turned around and invested almost $ 400 million more in it.

Buffett bought that previous Bank of America stake July 20-22 at stock prices ranging from $ 23.50 to $ 24.20. He added the next batch between July 23-27 at stock prices ranging from about $ 24.10 to about $ 24.30.

Warren buffett

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Those recent purchases bring Berkshire Hathaway’s total stake in Bank of America to around $ 24.2 billion and more than 998 million shares, approximately 11.4% of its outstanding shares.

Many market watchers have wondered if Buffett was overly conservative in the wake of the sharp decline in stocks this spring as a result of the coronavirus pandemic, especially given that Berkshire Hathaway had accumulated a backlog of cash from previous years. $ 128 billion.

Berkshire began rolling out 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 released its second quarter earnings results on July 16, reporting a profit of approximately $ 3.5 billion. That was less than $ 4 billion in the first quarter of the year, and well below the $ 7.3 billion he earned in the second quarter of 2019, the falls were largely due to his moves to bolster his provision for credit losses in light of the recession in the United States.

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 left most of his stake in Goldman Sachs (NYSE: GS), but increased its participation in PNC Financial Services Group (NYSE: PNC) and now Bank of America.