By Jonathan Stempel
In a regulatory file Tuesday night, Berkshire said it paid $ 337 million for about 13.6 million shares of Bank of America between July 31 and August 4.
It bought about 85.1 million shares of the bank on July 20, giving it a total of 1.03 billion shares, or 11.9%, worth $ 25.8 billion at the end of Tuesday.
Buffett’s aide did not respond immediately Wednesday to a request for comment. Bank of America did not respond immediately to such requests.
In April, the Richmond Federal Reserve approved Berkshire’s application to increase the Bank of America’s stake to 24.9 percent, more than double the usual 10 percent limit for investors, according to a Richmond Fed spokesman.
Berkshire will have to apply to become a bank holding company to increase its stake by more than 24.9%.
Buffett began investing in Bank of America in 2011 by buying $ 5 billion in preferred stock plus warrants to buy 700 million common shares, at a time when many investors are worried about the bank’s capital needs.
Berkshire exercised the warrants in 2017 and sold preferred shares to cover the costs.
The addition of Bank of America shares helped Berkshire reduce its cash stake to $ 137.2 billion on March 31.
Berkshire is expected to announce the results of the second quarter on Saturday.
(Report by Jonathan Stempel in New York; edited by Jonathan Oatis)