In a recent investment, Warren Buffet-led Berkshire Hathaway increased their stakes in JPMorgan Chase & Co. and PNC Fonancial Services Group Inc. The company also boosted several other investments and financial institutions.
The added stakes in JPMorgan is an indicator towards stronger ties between the two companies. One of Buffet’s top deputies, Todd Combs, is a part of the bank’s board. Berkshire has also teamed up with Amazon.com Inc., and a healthcare venture is on the cards.
An increased share percentage in the leading US companies indicates towards a stronger US economy and the rising interest rates will eventually be a profit-making factor for the country’s biggest money lenders. The move has made Buffet a shareholder in four of the five biggest banks in the United States. He has also increased his investment in Bank of America Corp. by 29 per cent and Goldman Sachs Group Inc. by 38 per cent.
A new stake on Travelers Co. by Berkshire is a move that has bet on the insurer competing with company’s own Geico unit.