Finance

Warren Buffett’s Berkshire Hathaway sells Bank of America for ninth straight day

Published

10 months ago

August 2, 2024

Warren Buffett walks the floor ahead of the Berkshire Hathaway Annual Shareholders Meeting in Omaha, Nebraska, on May 3, 2024.

David A. Grogen | CNBC

Berkshire Hathaway’s selling streak in its big Bank of America stake has extended to nine straight days, suggesting that Warren Buffett is not just trimming the longtime holding.

The Omaha-based conglomerate sold a total of 18.4 million shares of the bank from Thursday to Monday for $767 million at an average price of $41.65, a new regulatory filing late Monday revealed. Over the past nine trading sessions, Berkshire has cut its stake by 71.2 million shares with just more than $3 billion of sales.

After the selling spree, Berkshire still owns 961.6 million shares of BofA with a market value of $39.5 billion. BofA remains Berkshire’s second-largest equity holding after Apple, but if the conglomerate continues to offload those shares, the bank could fall below third-place American Express, currently valued at $37.6 billion.

Bank of America

Berkshire is still BofA’s largest shareholder with a 12.3% stake. As an owner of more than 10%, Berkshire has two business days to report any transactions, so we won’t know until Thursday if the selling streak continues Tuesday.

Buffett famously bought $5 billion worth of BofA’s preferred stock and warrants in 2011 in the aftermath of the financial crisis, shoring up confidence in the embattled lender struggling with losses tied to subprime mortgages. He converted those warrants in 2017, making Berkshire the largest shareholder in BofA, vowing that it would be a “long, long time” before he would sell.

Berkshire’s cost basis on the BofA position was about $14.15 per share or $14.6 billion as disclosed at the end of 2021. At the end of March, the holding was worth $39.2 billion. BofA closed Monday at $41.09.

The conglomerate could be taking some profits after BofA’s strong run, culminating in a big year this year. The bank stock has rallied 22% in 2024, outperforming the S&P 500′s 14.5% return.

Berkshire is set to release second-quarter earnings Saturday morning, which will also reveal further info on the conglomerate’s biggest holdings.

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Published

2 hours ago

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Finance

JPMorgan Chase is heading upmarket to woo America’s millionaires

Published

6 hours ago

May 27, 2025

Business Finance News

A living space in the new J.P. Morgan financial center branch format in Palm Beach.

Courtesy: JP Morgan

JPMorgan Chase thinks it has cracked the code on managing more money for America’s millionaires.

It’s not a new financial product, a novel software program or an enticing sign-up bonus. Instead, it’s a refurbished take on an old concept — the brick-and-mortar bank branch — along with new standards for service that are at the heart of its aspirations.

The bank is unveiling 14 of these new format branches — each acquired when JPMorgan took over First Republic in 2023 — in tony ZIP codes in New York, California, Florida and Massachusetts, including Napa, Palm Beach and Wellesley Hills.

It’s part of JPMorgan’s push to convince affluent Americans, many who already use Chase checking accounts or credit cards, that the bank is ready to manage their millions.

JPMorgan is the country’s biggest bank by deposits and assets and has a top share in areas as disparate as Wall Street trading and retail credit cards. But one of the only major categories where it isn’t a clear leader is in wealth management; peers like Morgan Stanley and Bank of America exceed it there.

While half of the 19 million affluent households in the U.S. bank with JPMorgan, it has just a 10% share of their investing dollars, according to Jennifer Roberts, CEO of Chase Consumer Banking.

“We have this giant opportunity to convince customers to have their wealth management business with us in addition to their deposit relationship,” Roberts said in a recent interview.

Helped by its acquisition of First Republic, which was known for catering to rich families living on either coast, JPMorgan decided to launch a new tier of service. Called J.P. Morgan Private Client, it is anchored by the new physical locations, of which there will be 31 by the end of next year.

The service comes with its own mobile banking app, but its main appeal is the in-person experience: Instead of being handed off to multiple employees like at a Chase branch, J.P. Morgan Private Client members are assigned to a single banker.

“What First Republic did really well was deliver a concierge-level of service where if you have an issue, a person owned it for you and you didn’t have to worry about it,” Roberts said. “So with this experience we are going to deliver a more elevated concierge type of service, like you would expect at a high-end hotel.”

The price of entry: at least $750,000 in deposits and investments, though Roberts said the bank is aiming for those with around $2 million to $3 million in balances.

Quiet opulence

The new locations, dubbed J.P. Morgan Financial Centers, have a warm feel and an earth-tone color palette that intentionally sets them apart from the nearly 5,000 Chase branches operated by the bank.

During a recent visit to a Manhattan location, the vibe is family office-meets hotel, with soaring ceilings, living room-style seating areas and art-filled meeting rooms scattered over two floors.

Gone is the traditional row of bank tellers; there is instead a concierge desk and a solitary ATM machine. Instead of lollipops, visitors are offered squares of Dylan’s chocolate. The space is quiet, except for the crack of a Perrier being opened or the whir of an espresso machine.

JP Morgan’s Palm Beach Reception.

Courtesy: JP Morgan

The design elements and hushed environment are “really meant to illustrate that we’re there to have a more serious, less-transactional conversation about your wealth planning over the course of time,” said Stevie Baron, JPMorgan’s head of affluent banking.

Those conversations involve planning for long-term goals and examining clients’ portfolios to see whether they are on track to reach them, he said.

Elements of the new high-end branch format could find their way to regular Chase branches, especially the 1,000 or so that are in high-income areas, Baron said.

JPMorgan executives have said the bank’s branch network has already succeeded as a feeder into the firm’s wealth management offerings.

The new service tier — which sits above the bank’s Chase Private Client offering, which is for those with at least $150,000 in balances and is delivered in the regular branches — is expected to help JPMorgan’s retail bank double client assets from the $1.08 trillion it reached in March.

“Obviously it’s a big challenge, because clients already have their established wealth managers, but it’s something that we’ve been making really strong progress in,” Roberts said.

Come one, come all

But attempting to create a new, more luxurious brand from a mainstream one — think the difference between Toyota and its luxury brand Lexus — is not without its risks. Or at least, momentary confusion.

So far, the two flagship financial centers in New York and San Francisco opened late last year haven’t seen heavy foot traffic, Roberts admitted.

“Our biggest challenge is that we don’t have people walking in because they don’t really understand what they are,” Roberts said. “So we just need to get the awareness out there.”

While JPMorgan is leaning on the first part of its name, rather than Chase, to signal exclusivity for the new branches, that may deter people from walking through the doors and starting conversations.

“I just want this to be acknowledged: We’re never going to turn someone away. Any customer can come and leverage any of our branches at any time,” Roberts said.

“We want people walking in, having the experience, meeting with our experts and understanding how we can help support their financial goals over time,” she said.