Berkshire still owns more than 998 million shares, valued at more than $42 billion, according to Bloomberg data, making the group one of the bank’s largest shareholders. Bank of America stock is up 7.9% in the month to date.
Buffett invested $5 billion in the bank in 2011 in exchange for the right to buy preferred stock and common shares, providing an important sign of confidence in the lender after the financial crisis. The infusion of cash removed doubts about whether the bank had enough capital, and its shares soon soared, leading to huge paper profits for Berkshire.
Buffett eventually used those rights and additional share purchases to build a stake that became one of Berkshire’s largest stock holdings. The billionaire’s long investment also served as a vote of confidence in the bank’s Chief Executive Officer Brian Moynihan’s stewardship.
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