(Bloomberg) – Warren Buffett’s Berkshire Hathaway Inc. bought roughly $ 813 million in shares of Bank of America Corp., accumulating more funds at the lender amid its 31% drop this year.
Berkshire bought approximately 33.9 million shares of the company this week, increasing its stake by more than 3% to approximately 981.7 million shares, according to a regulatory filing on Wednesday. Buffett’s conglomerate added the shares at an average price of $ 23.99.
Berkshire is increasing its wager on Bank of America after receiving the green light from the Federal Reserve when its holdings exceeded a 10% ownership level, a key threshold that requires regulatory review. Buffett asked policy makers last year for permission to increase participation, and the Federal Reserve Bank of Richmond issued a letter of no objection on April 20, according to a spokesman.
The Berkshire Bank of America stake, which started with preferred shares and warrants, has grown into one of the largest holdings in the Omaha, Nebraska-based conglomerate. At the end of March, it was Berkshire’s second largest by market value, behind Apple Inc.
Berkshire, which invests in multiple banks, cut some of those holdings in the first quarter, including bets on Goldman Sachs Group Inc. and JPMorgan Chase & Co. The company will report changes in the second quarter to those holdings in the coming month.
(Updates with details of the Federal Reserve Bank of Richmond in the third paragraph).
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