Bank of America Stake Lifted to 11.3% by Buffett's Berkshire

Warren Buffett’s Berkshire Hathaway lifted its stake in Bank of America to 11.3%, purchasing 34 million shares at an average $24.
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Warren Buffett’s Berkshire Hathaway lifted its stake in Bank of America to 11.3%, this week purchasing 34 million shares at an average $24.

The purchase was valued at $813 million. The 11.3% holding, almost 982 million shares, is valued at $23.9 billion based on Wednesday’s closing price of $24.31. 

At last check Bank of America shares were trading 0.9% higher at $24.53.

As of March 31, the Charlotte bank represented Berkshire's second biggest position after Apple  (AAPL) - Get Report.

Bank of America shares weren’t Berkshire Hathaway’s only purchase this month. It also agreed to pay $10 billion for most of Dominion Energy's  (D) - Get Report natural-gas assets.

Berkshire also apparently repurchased $5 billion to $6 billion of its shares from late April to early July, based on Securities and Exchange Commission filings.

Morningstar analyst Greggory Warren expressed enthusiasm for the Dominion Energy deal.

“We are encouraged to see Berkshire finally putting some capital to work following CEO Warren Buffett's hesitance to jump into the fray following the covid-19 shutdown,” he wrote in a July 6 commentary.

“While the deal may not move the needle all that much from a balance-sheet perspective, it should produce around $1 billion in net income annually, based on results for Dominion's gas distribution and gas transmission and storage operations the past several years.”

Berkshire Class B shares at last check stood at $191.76, off 0.2%. The stock lost 15% year to date through Wednesday.

Bank of America shares have fallen 31% in 2020 to date. The S&P 500 gained 0.8% during that period.