At the end of July to early August 2020, Buffett spent $2.07 billion to increase holdings for three consecutive weeks. $Bank of America (BAC.US)$Stocks, the current investment has nearly doubled, earning a net income of $1.9 billion.
On Thursday, October 14th, Bank of America announced better-than-expected performance - Q3 revenue of $22.87 billion, net income increased by 58% year-on-year to $7.7 billion. After the financial report was released, Bank of America's stock price rose approximately 7.5% for two consecutive days, closing at $46.37 on Friday, setting a new historical high. Bank of America's stock price has soared over 55% since the beginning of this year.
It is worth mentioning that Bank of America is one of Buffett's long-term stock holdings. Currently, Berkshire Hathaway holds 12% of Bank of America's stocks, making it the largest shareholder of Bank of America.
During the end of July to early August 2020, Buffett consecutively spent $2.07 billion to increase his position in Bank of America stocks, at an average price of around $24.35. Now, the value of these stocks has nearly doubled - the approximately 85 million shares of Bank of America stock purchased by Berkshire last year are now worth $3.9 billion, an increase of $1.9 billion in 14 months.
Last summer, when Buffett heavily bought Bank of America stocks, there were still many doubts in the market, but now Buffett has once again proven to the market that 'the old ginger is still hot'!
Berkshire currently holds 1 billion shares of Bank of America stocks, which are worth over $46 billion at the current stock price. Berkshire's latest annual...