In Berkshire Hathaway’s Form 13F regulatory filing, the company, owned by billionaire Warren Buffett, revealed it had bought a stake in banking giant Citigroup.
Berkshire Hathaway purchased 55.2 million shares, or approximately 2.8% of Citigroup’s outstanding shares, for a total value of around $2.95 billion. Berkshire Hathaway’s average cost per share was around $53.40.
At Monday’s close, Citigroup stock was down approximately 21%, nearing levels not seen since the peak of the coronavirus pandemic. Buffett is well-known as a value investor, seeking out stocks trading below their intrinsic value. Presently, Citigroup is trading below 60% of its tangible book value.
Berkshire Hathaway also established stakes in Markel, Ally Financial, McKesson, Celanese, Occidental Petroleum, and HP in the last quarter. However, only the latter three positions were worth more than $1 billion.