Warren Buffet’s
Berkshire Hathaway Inc. (NYSE: BRK.A and BRK.B) is
cutting its stake cutting its stake in mortgage lender
Home Capital Group Inc. (TSX: HCG) projected to be less than 10%.
In June 2017, Berkshire Hathaway acquired a nearly 20% stake in Home Capital
“When some were questioning Home’s staying power,” Buffet said in a release. The loan to HCG was $2 billion, $400 million of equity financing to Home – $153 million with the funding of the credit line and an additional $247 million.
This loan was dropped down like a care package when HCG faced a partial run on its deposits under accusation from regulators that it had
misled investors.
Though Buffet stated that Berkshire’s investment is no longer justified,
“We will continue to cheer from the sidelines for our friends at Home.”