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Warren Buffett's Berkshire Hathaway loads up on more shares of Goldman Sachs

Aug 15, 2018, 02:08 IST

Warren Buffett.Bill Pugliano/Stringer/Getty Images

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  • Warren Buffett's Berkshire Hathaway raised its stake in Goldman Sachs by 21% to 13.2 million shares during the second quarter.
  • Berkshire's initial position in the Wall Street bank stemmed from an investment during the financial crisis.
  • Berkshire also added to its Apple position.

Warren Buffett added to his stockpile of Goldman Sachs shares during the second quarter.

The investing legend's Berkshire Hathaway upped its stake in the investment bank by 21% to 13.2 million shares, according to a regulatory filing out Tuesday. It's total position in the firm is now worth more than $3 billion, assuming it has not sold any shares during Q3.

Berkshire's position in Goldman began in the wake of the financial crisis when it invested $5 billion in preferred stock that paid a 10% dividend and were callable at any time at a 10% premium. It also received warrants to purchase up to $5 billion of Goldman common stock with a $115 strike price.

In October of 2013, Berkshire received a handsome payday from the bank after exercising the warrants it bought during the financial crisis. The bank paid the conglomerate $2 billion in cash and gave it 13.1 million shares of stock.

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The 13-F released on Tuesday showed Berkshire raised its stake in Apple by 5% to 251 million shares. That stake is now worth more than $50 billion after Apple's market cap crossed the $1 trillion mark on August 3.

Berkshire also upped its stakes in Southwest Airlines and Delta Air Lines by 19% apiece while trimming its stake in American Airlines by 3%.

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