Berkshire buys new $4 billion stake in J.P. Morgan Chase

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FRI, NOV 16, 2018

WARREN BUFFETT WATCH
 

Buffett puts $4B bet on new BFF Jamie Dimon

Warren Buffett has been seeing a lot of Jamie Dimon lately. Their companies, along with Amazon, have formed a joint health-care venture to attack costs.

 

In June, they joined forces to urge CEOs not to make quarterly profit forecasts, even doing a lengthy CNBC interview together to put a spotlight on their argument. 

 

During the 2011 annual meeting, Buffett praised Dimon's annual letter to shareholders as a "tour de force, in terms of describing the banking scene."

 

Berkshire portfolio manager Todd Combs is on JPM's board. 

 

But for years, Berkshire didn't own any J.P. Morgan Chase stock.

 

That changed this summer, as an SEC filing this week revealed Buffett bought a new $4 billion stake in Dimon's bank. Berkshire also increased its Bank of America stake by 29% and added to its holdings of U.S. Bancorp, Goldman Sachs, and Bank of New York Mellon.

 

A check of the CNBC.com Berkshire Portfolio Tracker shows that by market value, financials fill 7 of the top 10 slots.

 

CNBC.com's Eric Rosenbaum explains why Buffett appears to see value in bank stocks right now.

 

BUFFETT AROUND THE INTERNET

 
 
  • Bloomberg Opinion columnist Tara Lachapelle thinks the bank stocks, and Berkshire's new $2.1B Oracle stake, lack the old Buffett flavor, writing "Warren Buffett, We Hardly Recognize You."
  • Forbes contributor Peter Cohan goes further, urging investors to sell Oracle now that Berkshire's bought it. 

 

HIGHLIGHTS FROM THE ARCHIVE

 
 

fWith Berkshire going big on banks, here are some bank-related clips from the Buffett Archive.

 

In this clip from a CNBC interview last year, Buffett says Berkshire will own its Bank of America stake "for a long time."

 

And in an interview this year, Buffett explains why Bank of America's Ken Lewis was the "unsung hero" of the 2008 financial crisis.

 

Also last year, Buffett was pressed to defend the company's big stake in Wells Fargo, in the wake of its series of scandals.

 

And remember, all banks aren't the same.

BERKSHIRE STOCK WATCH

 
 
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Berkshire Hathaway Class A shares closed at $328,350 Friday, up 4.4% over the previous four weeks, and up 21.0% from one year ago.

Berkshire Hathaway Class B shares closed at $218.41, up 4.1% over the previous four weeks, and up 20.2% from one year ago.

The benchmark S&P 500 index closed at 2736.27, down 1.1% over the previous four weeks, and up 5.8% from one year ago.

QUESTIONS OR COMMENTS

 
 

Please send any question  of comments to buffett@cnbc.com


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