Berkshire Hathaway now holds 981.6 million Bank of America shares worth round $24 billion.
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Bank of America
is Warren Buffett’s favourite bank.
(ticker: BRK.B) scooped up 33.9 million shares up to now week, paying about $810 million, or a median price of about $24 a share. The stock, which ended Friday at $24.35, up 5% on the week, is off about 31% this 12 months and has lagged behind the stock market in the course of the restoration from March lows.
Buffett had no remark however he’s apparently snug with the stock’s valuation. Bank of America (BAC) trades for 1.2 instances tangible e-book value, a reduction to trade chief
(JPM) at 1.6 instances. The bank is costlier based mostly on earnings, buying and selling for 16 instances projected 2020 earnings of about $1.50 share.
Earnings are depressed by sizable loan-loss provisions. Buffett may be trying to doubtlessly greater earnings in 2021, when the consensus is $2.15 a share. The stock yields nearly 3%.
Berkshire now holds 981.6 million Bank of America shares worth round $24 billion, making it the corporate’s second-largest fairness holding behind
(AAPL). Buffett, Berkshire’s CEO, has lauded each the bank and its CEO, Brian Moynihan. Buffett is a giant fan of bank stocks, with Berkshire holding stakes in
Bank of New York Mellon
Berkshire now holds an 11.3% curiosity in Bank of America. Berkshire gained approval earlier this 12 months from the Federal Reserve Bank of Richmond to raise its stake above 10%, the conventional restrict on investor possession in banks. Previous that time, purchases should be promptly reported. Buffett should just like the stock as a result of he prefers to maintain his buys and sells quiet for so long as doable.
Write to Andrew Bary at [email protected]