Warren Buffett plows another $337 million into Bank of America, boosting his stake to nearly 12%
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Theron Mohamed
Aug 5, 2020, 16:09 IST
Bill Pugliano/Getty
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Warren Buffett spent another $337 million on Bank of America stock between July 31 and August 4, SEC filings show.
The billionaire investor and Berkshire Hathaway CEO has splurged close to $2.1 billion on the bank's shares over the past 12 trading days, raising his ownership stake to almost 12%.
Bank of America is the second-biggest holding in Berkshire's stock portfolio after Apple.
The famed investor's Berkshire Hathaway conglomerate snapped up 13.6 million shares at an average price of around $24.81. As a result, its stake in the bank swelled to over 1.03 billion shares or 11.9% — a position worth close to $26 billion based on Bank of America's closing share price on Tuesday.
Buffett has now shelled out nearly $2.1 billion on 85 million of the bank's shares over the past 12 consecutive trading days. The purchases have boosted Berkshire's position by about 9%.
Berkshire is Bank of America's biggest shareholder, and Bank of America is the second-largest holding in Berkshire's stock portfolio after Apple.
Buffett has been granted special permission to more than double his Bank of America stake to 24.9%, a spokesperson for the Federal Reserve Bank of Richmond told Business Insider this week. Investors are typically allowed to own up to 10% of a bank.
The billionaire is probably bolstering his investment in Bank of America because its stock price is down about 30% this year, and he expects it to make a full recovery from the coronavirus pandemic in time.
Here's a chart showing Buffett's spending on Bank of America stock in recent days:
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