News

Actions

Berkshire Hathaway set to become Bank of America's largest investor

Berkshire Hathaway set to become Bank of America's largest investor
Posted at 1:41 PM, Jun 29, 2017
and last updated 2017-06-29 14:41:32-04

After Bank of America received approval to boost its dividends to 48 cents per share, Berkshire Hathaway is expected to become its largest investor. 

Warren Buffett told Berkshire stockholders earlier this year he would convert his preferred shares in Bank of America to common stock if the dividend increased to more than 44 cents. 

In 2011, Buffett invested $5 billion in BOA which gave Berkshire Hathaway warrants to buy 700 million shares of stock in the bank. 

Berkshire was previously being paid $300 million per year in interest payments, but converting to common stock now makes the company more money.