The Oracle of Omaha is bullish on Bank of America (NYSE:BAC). That a lot is obvious.
Days after revealing that he had invested one other $813 million in one of many nation’s largest banks, Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A) wheeled round and invested nearly $400 million extra in it.
Buffett purchased that earlier Bank of America stake between July 20 and July 22 at share costs starting from $23.50 to $24.20. He added the following batch between July 23 and July 27 at share costs starting from roughly $24.10 to roughly $24.30.
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These latest buys carry Berkshire Hathaway’s complete possession stake in Bank of America to about $24.2 billion and greater than 998 million shares — roughly 11.4% of its shares excellent.
Many market observers have questioned if Buffett was being too conservative within the wake of the sharp lower in equities that occurred this spring because of the coronavirus pandemic — particularly on condition that Berkshire Hathaway had in prior years constructed up a cash hoard of $128 billion.
Berkshire started to deploy a few of that capital earlier this month when it bought the pure fuel belongings of Dominion Power (NYSE:D) for $9.7 billion.
Bank of America delivered its second-quarter earnings outcomes on July 16, reporting a revenue of roughly $3.5 billion. That was down from $Four billion within the first quarter of the yr, and effectively off the $7.Three billion it earned in Q2 2019, declines largely pushed by its strikes to bolster its loan-loss provisioning in gentle of the U.S. recession.
Buffett and Berkshire have taken a considerably blended strategy to bank stocks this yr. The conglomerate decreased its place in Wells Fargo (NYSE:WFC), and dumped most of its stake in Goldman Sachs (NYSE:GS), however elevated its stake in PNC Monetary Companies Group (NYSE:PNC) and now Bank of America.