Andrew Harrer/Bloomberg
Some 13 years after Warren Buffett-led Berkshire Hathaway made a $5 billion investment in Bank of America , the Oracle of Omaha has been reducing his stake in the Charlotte, North Carolina-based bank.
It’s just the latest example of Buffett making a big bet on a troubled financial institution — and profiting handsomely.
Back in August 2011, BofA was coming off a quarter in which it lost $8.8 billion, largely due to costs related to the subprime mortgage crisis. The bank’s stock price was down about 50% on the year.
Buffett was reportedly soaking in the bathtub when he got the idea to invest in BofA. He soon tried to reach CEO Brian Moynihan but was thwarted by a call-center worker who wasn’t able to transfer calls to the chief executive.
Less than 24 hours after the two men eventually connected, they signed a deal. Years later, Moynihan credited Buffett with stabilizing BofA in its time of need.
Throughout his legendary career, the 94-year-old investor has bought bank stocks when they’re low and taken big profits from the investments, though he has not always executed his exit flawlessly.
What follows is a look at four instances of Buffett’s pattern, starting with an investment he made roughly 60 years ago.