Here's How Much Warren Buffett Has Made on Bank of America
Famed investor Warren Buffett hasn't been shy about his love for bank stocks in recent years. As a value investor, Buffett has probably been drawn to the low valuations at which large banks trade compared with the rest of the market. Yet out of all his bank holdings, Buffett appears to have particular affinity for Bank of America (NYSE: BAC), his largest bank holding and his second largest holding overall.
Though Wells Fargo (NYSE: WFC) had long been "Buffett's bank" after Berkshire Hathaway (NYSE: BRK-A) (NYSE: BRK-B) bought a large stake in Wells during the 1989-1991 period, Bank of America surpassed Wells Fargo in the Buffett portfolio in 2018, as Buffett continued to increase an already large stake, while slightly decreasing his Wells Fargo stake to avoid exceeding a 10% ownership threshold.
Berkshire's holding in Bank of America dates to 2011, but Buffett has continued to add to that initial investment over the past two years. In fact, just two months ago, Buffett applied for permission from the Federal Reserve to increase his Bank of America stake to over 10% of the company, without the need for increased regulatory scrutiny -- a request he wasn't willing to make for the beleaguered Wells Fargo.
Source Fool.com
