ALBAWABA - According to a regulatory filing, Warren Buffett’s firm Berkshire Hathaway sold over 33.9 million Bank of America shares for nearly $1.48 billion this week through a range of transactions.
According to statistics provided by Bloomberg, Berkshire still has more than 998 million shares invested in the bank, valued at more than $42 billion, making the company one of the major owners in the bank, as reported by Fortune.
In 2011, Buffett handed the bank $5 billion in return for preferred stock and the option to purchase ordinary shares, sending a crucial message of confidence in the institution in the wake of the financial crisis.
The bank's shares quickly rose, generating a huge financial profit for Berkshire, since the cash injection had allayed concerns about the bank's capital sufficiency. The stock price of Bank of America has increased 7.9% so far this month, Fortune adds.
Known as "The Oracle of Omaha," Warren Buffett is a renowned figure in the investing world. His company, Berkshire Hathaway, is well known for its wide range of corporate interests, as noted by Yahoo News, including substantial insurance.
With assets above $3.0 trillion, Bank of America is among the biggest financial organizations in the United States. Buffett's company recently sold off 3.28% of its shares in the Bank, resulting in a -0.45% loss on the portfolio. Yet, the billionaire’s investments in the bank still accounts for a considerable 12.85% of Buffett's whole portfolio.
