Buffett's firm to become Bank of America's biggest investor

Friday, June 30, 2017, Vol. 41, No. 26

OMAHA, Neb. (AP) — Warren Buffett's company is likely to become Bank of America's largest investor soon because the bank received approval to boost its dividend.

Buffett's Berkshire Hathaway holds warrants to buy 700 million shares of Bank of America stock. It received the warrants in 2011 when Buffett invested $5 billion in the bank.

Berkshire has received $300 million a year in interest payments, but now that Bank of America plans to increase its annual dividend to 48 cents per share Berkshire would make more by converting to common stock.

Buffett told his shareholders earlier this year that he planned to trade Berkshire's preferred stock for common shares once Bank of America raised its dividend over 44 cents.

Berkshire is also a major shareholder in Wells Fargo, American Express and Goldman Sachs.