What are the big names who are now buying and/or owning BAC?

Currently there are a lot of negative news and things about BAC and all banks in general. We are wondering what are the famed value investors’ takes on BAC:

Bruce Berkowitz owns 105 million shares of BAC, which is 7.8257% of his total portfolio. He paid an average of $14.37 per share for BAC. For his last purchase in the third quarter of 2011, he paid a quarterly average of $8.28 for 5,364,340 shares.

Mohnish Pabrai has gone long on BAC in a massive way in the third quarter. Now 7,053,551 shares of BAC with average price of $6.12 comprises nearly 20% of his listed equity holding value!

John Paulson had more than $1 Billion in this  large cap and severely distressed bank even though he sold half of his stake in BAC during the second quarter. Now he owns 60.4 million shares with average price of $9.17.

Of course, Warren Buffett, the biggest family name in investment, invested $5 billion in BAC in Aug. 2011 to keep the company afloat after subprime mortgage-related losses left the lender low on capital. In return, BAC would sell Buffett cumulative perpetual preferred stock, with a 6% annual dividend, and give him a warrant to buy 700 million shares at $7.14 per share.

On 06/30/2011, Dodge Cox reported holding 9,194,496 shares of BAC. On 09/30/2011, it reported holding 135,586,405 shares. The net increase in shares for BAC is 126,391,909 or 1374.65%!!

Now we know what Mr. Market are thinking – “BAC is way too risky!”, or “we do not know how low it will fall.” But by checking what the above big time investors (or institution) are doing, should we get hint that BAC is way oversold and therefore buying it may be good opportunity to rip sizable profit in the long run?

About Timeless Investor

My name is Samual Lau. I am a long-term value investor and a zealous disciple of Ben Graham. And I am a MBA graduated in May 2010 from Carnegie Mellon University. My concentrations are Finance, Strategy and Marketing.
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