After Tuesday’s market close, Bank of America confirmed that its billionaire investor, Warren Buffett and his Buffett’s Berkshire Hathaway has bought 700 million of the banks common stock at $7.14 per share. The purchase was made with shares that Berkshire acquired through bank investments from August 2011.
In his annual letter to shareholders this past spring, Buffett mentioned that if Bank of America hiked its annual dividend above 4 cents a share prior to 2021, Berkshire would potentially buy the 700 million shares of Bank of America stock – and they did just that.
“I am impressed with the profit-generating abilities of the franchise and that they are acting aggressively to put their challenges behind them,” Buffet said in a statement back in 2011.
Since he made his $5 billion investment back in August 2011, Bank of America’s stock has risen by 209% which pushes Buffett’s stake in Bank of America to nearly 6.5%, making him the largest shareholder of Bank of America.