This Embattled Bank Stock Has Quietly Become a Top-20 Position in Berkshire Hathaway's Portfolio
Warren Buffett and the large conglomerate he runs, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), have a history of investing in bank stocks. Over the last two decades, Berkshire had at one point or another invested in virtually every major Wall Street bank. Every bank, that is, aside from Citigroup (NYSE: C).
It makes sense. Citigroup was a mess after having too much subprime exposure during the Great Recession, and its returns greatly lagged peers ever since. In 2020, the bank landed in regulatory trouble, and the stock now trades at a big discount.
Then, in the first quarter of 2022, things changed and Berkshire purchased a sizable position (currently valued at around $2.4 billion) in Citigroup. After Berkshire sold shares of other key holdings in the third quarter, the embattled Citigroup finds itself in a top-20 position in the conglomerate's portfolio and Berkshire's third-largest bank holding.
Source Fool.com
