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Warren Buffet extends his stock in Bank of America by $337 million

Filings at the Securities and Exchange Commission indicate that Warren Buffet has expanded his stake in the Bank of America (BoA) after purchasing shares worth $337 million. With the additional purchase, Buffet the head of Berkshire Hathaway conglomerate now has a stake of 11.9% or 1.03 billion shares.

The recent acquisition, completed between July 31 and August 4 saw Buffet acquire about 13.6 million shares at an average price of $24.81. Based on Tuesday’s BoA closing share price. Buffet’s stake now stands at about $26 billion.

The purchase has already had an impact on Berkshire’s position getting a boost of about 9%. Over the last 12 trading days, Buffet has shelled out about $2.1 billion on the bank’s 85 million shares.

Berkshire Hathaway was in April allowed to more than double its stake to 24.9% by the Federal Reserve Bank of Richmond. On May 2020, Buffet’s Berkshire Hathaway offloaded over $16 million worth of Bancorp (USB) stocks to possibly allocate those money for other banking institutions including BoA.

BoA stock down 30% YTD

Buffet’s acquisition of the additional stake at the bank comes at a time its stock has dropped by almost 30% this year as a result of the coronavirus pandemic. The billionaire aims to profit once the stock makes a full recovery later in the year.

Bank of America stock performance. data.

Berkshire and Buffet now become the biggest shareholder in the Bank of America. On the other hand, the Bank of America is the second-largest holding in Berkshire’s stock portfolio after Apple.

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