Buffett Becomes Bank Of America's Largest Shareholder, Makes A Cool $11.5 Billion

8/31/17

On Tuesday, August 29th, Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(BRK.B) exercised warrants to acquire 700 million common shares of Bank of America (BAC). In doing so, Berkshire is now Bank of America’s largest shareholder, with a roughly 6.6% stake in the company.

Buffett and Berkshire will make a gigantic sum from the transaction. The warrants allow Berkshire to convert at a price of $7.14 apiece. Bank of America stock closed at $23.58 on Tuesday, meaning Berkshire netted a profit of about $11.5 billion on paper.

This article will discuss Berkshire’s investment, and whether dividend growth investors should consider following the Oracle of Omaha’s footsteps.

READ FULL ARTICLE HERE

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