JPMorgan is gaining ground after Warren Buffett's Berkshire Hathaway disclosed a $4 billion stake

Alex Wong / Getty ImagesWarren Buffett
  • Warren Buffett’s Berkshire Hathaway bought a $US4 billion stake in JPMorgan in the third quarter, according to a regulatory filing released on Wednesday.
  • The billionaire has a long-term relationship with JPMorgan CEO Jamie Dimon, and said they “trust each other.”
  • Buffett had said he regretted not investing in JPMorgan earlier.
  • Watch JPMorgan trade live.

Warren Buffett, the most famous value investor around, is loading up on big banks.

Buffett’s Berkshire Hathaway bought 35.7 million shares of JPMorgan in the third quarter worth $US4.02 billion, according to regulatory documents filed Wednesday. A back of the envelope calculation shows the stake was established at an average price of $US112.6 – 5% above where shares were trading on Wednesday.

Berkshire also added to its investments in Bank of America, Goldman Sachs and US Bancorp, though it slightly cut its stake in Wells Fargo.

The billionaire has a good relationship with JPMorgan CEO Jamie Dimon. Earlier this year, Buffett partnered with Dimon and Amazon CEO Jeff Bezos on a new health care venture for employees.

“Our companies are big, and we can still make things happen,” Buffett told CNBC. “We don’t have bureaucratic problems or constituency problems that some others might, and we like we each other, we trust each other.”

Buffett also said in an interview with Yahoo Finance that he regretted not investing in JPMorgan earlier.

In October, JPMorgan posted better-than-expected revenues, with profit climbing 24%, thanks to gains across most business lines and higher interest rates that have benefitted most of the bank’s businesses.

JPMorgan gained as much as 1% in premarket trading following the news, and was little changed for this year.

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