The billionaire’s Berkshire Hathaway Inc. spent at least $1.7 billion buying shares of the bank in the last two weeks of July, building its stake to about $25 billion, based on the minimum purchase prices disclosed in regulatory filings. The holdings are Berkshire’s second-largest common stock bet, behind Apple Inc.
A Securities and Exchange Commission filing showed Buffett’s conglomerate bought 21.2 million shares of the banking giant between Tuesday and Thursday. That increased Berkshire stake in Bank of America by $522 million and sets its total position in the bank at 11.8%.
Buffett’s conglomerate piled even further into Bank of America stock after getting a green light earlier this year from the Federal Reserve. The purchases came after the shares slumped almost 30% this year. They’re up 4.3% this month.
Bank shares have been hit lately as concerns about the economy keep interest rates low. Bank of America shares are off by 29% this year.
Though Buffett voiced his usual upbeat tone on the American economy during Berkshire’s annual shareholder meeting in May, he did acknowledge the extreme pressure the Covid19 pandemic is having on certain industries.