- Citigroup (NYSE:C) is jumping on an investment from Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B).
- It acquired more than 55 million shares for about $3 billion.
- This has it taking a 2.8% stake in the company.
Citigroup (NYSE:C) stock is jumping on Tuesday following the revelation that Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) has taken a stake in the banking company.
Berkshire Hathaway spent nearly $3 billion to acquire more than 55 million shares of C stock. That netted the investment firm a 2.8% stake in the company. That comes as the bank has slumped recently on fears of inflation harming economic growth.
With Berkshire Hathaway’s new stake in Citigroup, it’s now the fourth-largest shareholder of the company’s stock. While C stock has tumbled over the last year, turnaround efforts from Jane Fraser could make this a solid investment for Buffett.
Thomas Hayes, chairman at Great Hill Capital in New York, told Reuters the following about the news.
“Citi is one of the cheapest stocks in the market. With Buffett ‘blessing’ it, it should finally get the interest it deserves and attract some buying interest in coming weeks and months.”
Citigroup is far from the only financial company that Berkshire Hathaway has an investment in. Others include Bank of NY Mellon (NYSE:BK), U.S. Bancorp (NYSE:USB), Mastercard (NYSE:MA), and Visa (NYSE:V). It’s also worth mentioning that Buffett’s investment firm exited its position in Wells Fargo (NYSE:WFC) during the first quarter of the year.
C stock is up 7.5% as of Tuesday morning but is still down 19.1% since the start of the year.
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