Warren Buffett's Berkshire Hathway sells $1.48 billion stake in Bank of America

Berkshire Hathaway sells 34 million Bank of America shares for $1.48 billion, retains over 998 million shares worth $42 billion

Warren Buffett’s Berkshire Hathaway sold about 34 million shares of Bank of America Corp. for $1.48 billion, as per a public filing. Berkshire still owns more than 998 million shares, valued at over $42 billion. This makes the conglomerate one of the bank’s largest shareholders. This comes as Bank of America stock has risen 7.9% in the month to date.

Warren Buffett, chairman and CEO of Berkshire Hathaway, smiles as he plays bridge following the annual Berkshire Hathaway shareholders meeting in Omaha. (AP)

Warren Buffett invested $5 billion in the bank in 2011 in exchange for preferred stock and the right to buy common shares. The cash infusion quelled doubts about whether the bank had enough capital owing to which its shares soon surged. This created a massive paper profit for Berkshire Hathaway at the time.

Buffett used those rights and additional share purchases to build up a stake that swelled into one of Berkshire’s largest stock holdings. The billionaire’s investment has also been a vote of confidence in bank’s chief executive officer Brian Moynihan.