Warren Buffett bows out of Canada’s Home Capital — and the stock dives | General financial discussion | Discussion forum

From the National Post

Warren Buffett bows out of Canada’s Home Capital — and the stock dives

'We will continue to cheer from the sidelines for our friends at Home'

TORONTO — Home Capital Group Inc. says Warren Buffet’s Berkshire Hathaway Inc. is reducing its stake in the mortgage lender to less than 10 per cent.

The stock dropped more than 11 per cent to $14.56 after the open.

Buffet’s investment firm acquired a nearly 20-per-cent stake in Home Capital in 2017 when it stepped in to provide a $2-billion credit facility and make an equity investment in the alternative mortgage lender.

The investment came as Home Capital faced a partial run on its deposits following regulators’ accusations that the company misled investors.

Berkshire Hathaway’s investment helped restore confidence in the lender.

Buffet says with the full repayment of the credit line, Berkshire’s investment in Home Capital is now not of a size to justify the firm’s ongoing involvement.

https://business.financialpost.com/news/fp-street/berkshire-hathaway-reducing-home-capital-stake-to-less-than-10-per-cent

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