Warren Buffett to become the biggest shareholder in this Charlotte company

Dianna Christensen
July 1, 2017

Warren Buffett first invested in Bank of America back in 2011, purchasing $5 billion worth of preferred shares with a 6% dividend.

Bank of America is up 7.93% this year and now trades at $24.36. For the second year in a row, the Fed approved Bank of America's plan to raise dividends after it proved it had enough surplus capital to withstand market turmoil and avoid another financial crisis. (BAC) rose 1% in premarket trade Friday, after Warren Buffett's Berkshire Hathaway Inc.

The move makes Buffett the largest shareholder in two of the world's largest banks, Bank of America and Wells Fargo. Well, the preferred stock pays Berkshire 6% on $5 billion, or $300 million per year.

Shares of the bank were trading Friday morning at around $24.36.

The billionaire's Berkshire Hathaway on Friday moved to capitalize on a rejuvenated Bank of America - and in the process pocketed a tidy $12 billion profit on its almost six-year old investment.

Hogs escape, run free on interstate after semi overturns
Police are still trying to figure out what caused the accident and were unable to confirm if any pigs were seriously injured. The crash shut down both sides of the highway between Pleasant Run and Belt Line roads in Wilmer.

Police Enforce Ban on Istanbul Pride March
Police had to intervene and seven people protesting the event and three LGBT activists were detained, Hurriyet reports. The Turkish government says there is no discrimination against gays and that current laws already protect citizens.

Dozens of prospective jurors beg off 'Pharma Bro' case
Matsumoto seemed delighted when she finally came across a woman in her 20s who said she hadn't heard of Shkreli or his case. Outrage over that unrelated move spilled into the courtroom today and stands to slow progress of the fraud trial .

Despite his famous aversion to tech stocks, Buffett has built an $18.6 billion stake in Apple, which he described at Berkshire's annual meeting in May as "more of a consumer products business".

Before his February letter, Mr. Buffett had said he would wait to exercise the warrants, which expire in 2021.

Buffett, 86, criticized the Republican plan last month at the annual meeting of his conglomerate, Berkshire Hathaway Inc. But one issue for the bank is that profit gains from higher interest rates have slowed as long-term rates have remained low.

Bank of America said it would make the dividend increase official "beginning in the third quarter of 2017".

The dividend and buyback boosts are positive for Bank of America Chairman and CEO Brian Moynihan.

Other reports by GlobalViralNews

Discuss This Article