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Warren Buffett buys $800m of Bank of America shares

The value veteran is increasing exposure to the firm that lost 30% of its market value since February.

Warren Buffett buys $800m of Bank of America shares

Warren Buffett has significantly increased his exposure to Bank of America, with Berkshire Hathaway buying $800m (€689m) worth of shares in the major US bank this week, according to an SEC filing.

As a result Buffett’s company currently holds a total of $24.1bn (€21bn) or 11.3% in Bank of America, the press release stated. According to media reports, the purchase represents a 4% increase in his most recent positioning.

Bank of America equity suffered significantly from the coronavirus pandemic, losing about 30% of their market value since February. The KBW Bank Index, which is tracking the US banking sector, also fell sharply.

Berkshire Hathaway had sold some of its banking exposure this year. The company shed a large part of its position in Goldman Sachs and reduced its position in JP Morgan Chase.

Earlier this month, Buffett bought Dominion Gas Network’s pipeline network for around $9.7bn after Dominion and its deal partner Duke Energy had to withdraw from a controversial pipeline project.

Buffet bought more than 12,000 kilometers of pipelines as well as large storage capacities. According to reports, Berkshire Hathaway reportedly has around $137bn assets under management. 

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