Berkshire Hathaway reveals stake in JP Morgan as Warren Buffett raises bet on the US banking system
Shares of J.P. Morgan rallied 1.5 percent in after hours trading following news of Buffett's new $4 billion stake.
The 'Oracle of Omaha' is now very much long the U.S. banking system. Berkshire's second and third largest holdings behind Apple are Bank of America and Wells Fargo.
Buffett and J.P. Morgan CEO Jamie Dimon admire each other. Buffett has said he reads Dimon's annual shareholder letter for insights into the banking industry.
Warren Buffett's Berkshire Hathaway BRK.A added more than 35 million shares of J.P. Morgan Chase JPM last quarter, according to the firm's latest filing with the Securities and Exchange Commission.
The 'Oracle of Omaha' is now very much long the U.S. banking system. Berkshire's second and third largest holdings behind Apple AAPL are Bank of America BAC and Wells Fargo WFC . He increased the firm's Bank of America stake by 29 percent last quarter. Berkshire also added to its large already stakes in U.S. Bancorp USB , Goldman Sachs GS , and Bank of New York Mellon BK last quarter, filings showed.
Shares of J.P. Morgan rallied 1.5 percent in after hours trading following news of Buffett's new $4 billion stake, which was reported in the company's 13-F filing. The filing documents the company's holdings as of end of September. Berkshire slightly decreased its stake in Wells Fargo.
Buffett and J.P. Morgan CEO Jamie Dimon admire each other. Buffett has said he reads Dimon's annual shareholder letter for insights into the banking industry. Dimon is the longest-tenured of CEOs leading a major U.S. bank. The pair, along with Jeff Bezos of Amazon in January announced a partnership to cut health-care costs and improve services for their U.S. employees.
Todd Combs, one of Buffett's investing lieutenants at Berkshire who first got the company involved in Apple, sits on the board of directors of J.P. Morgan.
This is a developing story. Check back here for more details.
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