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Stocks B / Berkshire Hathaway


Subject:  Re: Maystery purchase Date:  11/4/2018  7:42 AM
Author:  Maxthetrade Number:  239425 of 243320

I messed up the formating in my previous post.

I too admire your eagle eyes, but I don't see how you arrived at the 4.9bn number...?

Berkshire owned 700m shares of BAC at end 2017. (actually a bit fewer in the Q2 13f, but a 13f can be off by a bit due to quirks of pension funds, voting control, etc)

At end Q3 the position was worth $26.5bn (per footnote page 11) and the shares were trading at $27.50 at end Sept, so we know they owned 963.6 million shares.
So, year to date, 263.6 million shares were added, apparently almost all of them in Q3.
If we assume that the purchases were spread over time a bit but tilted towards the weaker price spots in the
latter half of the quarter, they probably paid an average of around $31.50 a share, give or take.
That suggests they spent about $8.1bn on BAC shares, no?

Hi Jim,
The 4.9bn was a typo, I meant 5.9bn and that's obviously only an estimate. BAC closing price on Sep 28 was 29.46, so we owned roughly 900mm shares at the end of the quarter. 200mm new shares at an estimated purchase price of $29.5 gave me the 5.9bn.

I think BoA has improved very substantially under Moynihan and could look a lot more like Wells in the future. Time will tell.
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