Last quarter, Warren Buffett reduced his exposure to two additional banks while increasing his commitment to Bank of America (BAC) and increasing his ownership of Capital One (COF).
According to papers, the billionaire’s investment conglomerate Berkshire Hathaway (BRK-A) (BRK-B) sold $1.4 billion of its remaining stakes in Minneapolis-based US Bancorp (USB) and custodian bank Bank of New York Mellon (BK).
They are the most recent of his numerous bank bets to be reduced. Between 2020 and 2022, The Oracle of Omaha liquidated a significant amount of Berkshire’s assets in US banks, some just months before of the mid-March banking system shakeup.
According to records, despite a $4 billion decline in the value of its whole position in the stock during the first quarter, Berkshire raised its holdings in Bank of America by 2%.
At the shareholder meeting in Omaha, Nebraska, Buffett stated, “I like Bank of America and I like the management.”
Buffett and Bank of America have a long relationship. In 2011, he invested $5 billion into the Charlotte, North Carolina-based bank. At the time, Brian Moynihan was still the lender’s interim CEO, and losses from subprime loans had put a lot of pressure on the lender’s stock.
Early after-hours trading saw US Bancorp, BNY Mellon, and Jefferies decline while Bank of America, Citi, Capital One, and Ally increased.
In the quarter, Buffett did increase his investment in a number of other financial businesses. Capital One (COF) was purchased for $954 million by Berkshire, and its stake in Ally Financial (ALLY) was increased by $10.6 million. Additionally, the conglomerate sold Jefferies Financial Group (JEF) stock for $1.1 million while keeping its holding in Citigroup (C).
Early after-hours trading saw US Bancorp, BNY Mellon, and Jefferies decline while Bank of America, Citi, Capital One, and Ally increased.
Last quarter, Berkshire Hathaway wasn’t the only well-known investment manager to sell bank stock.
The largest hedge fund in the world, Bridgewater Associates, sold bank equities for around $180 million.
This comprised more than 80% of its stakes in US Bancorp and Bank of New York Mellon. A total of 15 more US institutions, including Bank of America (BAC), Western Alliance, Zions (ZION), PacWest (PACW), and New York Community Bank (NYCB), had their stakes in Bridgewater cancelled out.
Last quarter, Berkshire Hathaway wasn’t the only well-known investment manager to sell bank stock.
The largest hedge fund in the world, Bridgewater Associates, sold bank equities for around $180 million.
This comprised more than 80% of its stakes in US Bancorp and Bank of New York Mellon. A total of 15 more US institutions, including Bank of America (BAC), Western Alliance, Zions (ZION), PacWest (PACW), and New York Community Bank (NYCB), had their stakes in Bridgewater cancelled out.
- Savers rush to Mastercard organizations with their stores
- Obligation roof: How the 2023 show is ‘100 percent not quite the same as’ 2011
- NBCUniversal’s Linda Yaccarino is in converses with become Twitter President – WSJ