Key Takeaways

  • Berkshire Hathaway added 34 million shares of BAC this week
  • BAC is Berkshire's second largest equity position
  • BAC shares are down 32% YTD

Warren Buffett's Berkshire Hathaway bought more than $800 million worth of Bank of America stock this week, boosting its stake in the banking giant to more than 11%, according to SEC filings. Berkshire Hathaway purchased nearly 34 million shares at an average price of about $24 between Monday and Wednesday, which values the stake at $813 million. Berkshire's total stake in the Bank is worth about $23.9 billion, based on Bank of America's stock price of $24.31 as of Wednesday's close.

Bank of America was Berkshire's second-largest holding by dollar value at the end of March, after Apple. The bank's shares have tumbled 32% this year, meaning Berkshire's stake would have been worth around $35 billion at the start of January. Apart from Apple, Berkshire's largest equity holding, most of its top equity positions have had a rough 2020.

YCharts
YCharts.

Buffett, always eager for a bargain, has done some deals in 2020, but Berkshire Hathaway still has more than $137 billion in cash ready to deploy. The company spent $10 billion to acquire most of Dominion Energy's natural gas assets earlier this month, and appears to have bought back between $5 billion and $6 billion of its stock between late April and early July.

The table below indicates Berkshire Hathaway's top equity positions at the beginning of 2020. Since then, the company has sold most of its airline stocks and added to its positions in Apple and Bank of America.

Berkshire Hathaway Annual Report
Berkshire Hathaway Annual Report.