Warren Buffett Invests in Wells Fargo and Bank of AmericaPosted by in Blog on September 2, 2011
“I like buying on sale,” Warren Buffett, Berkshire’s chief executive officer and head of investments, said in a recent television interview with Charlie Rose to be broadcast on PBS.
Berkshire Hathaway acquired 9.7 million shares of the biggestU.S.home lender during the 2nd quarter. These purchases represent an increase of 2.8 percent ofBerkshire’s holdings of WFC.
The purchases of the Wells Fargo stock cost Berkshire Hathaway an estimated $ 277 million, according to an article in Investment News.
“Bank of America Corp. has received a vote of confidence from legendary investor Warren Buffett and sealed an agreement for his company, Berkshire Hathaway Inc. to inject $ 5 billion into the bank in a private offering,” according to an article in On Wall Street.
Buffett initiated the decision to invest in Bank of America, according to Buffet’s prepared statement.
Buffett is impressed with Bank of America’s profit-generating abilities, and how they are acting aggressively to put their challenges behind them. “Bank of America is focused on their customers and serving them well. That’s what customers want, and that’s the company’s strategy.”
Bank ofAmericaChief Executive Brian Moynihan said in a statement, “I remain confident that we have the capital and liquidity we need to run our business. At the same time, I also recognize that a large investment by Warren Buffett is a strong endorsement in our vision and our strategy.”