Capital One shares rebound after Warren Buffett makes near $1bln bet on bank

Shares of Capital One Financial Corp rose on Tuesday, rebounding from two weeks of losses after billionaire investor Warren Buffett’s Berkshire Hathaway Inc disclosed it had taken a stake of nearly $1 billion in the credit cards-focused bank.

Berkshire acquired 9.92 million shares in Capital One, a stake worth $954 million based on the closing price on March 31, regulatory filings showed on Monday.

Famous for its credit-card advertising slogan “What’s in your wallet?”, McLean, Virginia-based Capital One also has a huge auto lending and commercial banking business. Its peers include American Express Co and Bread Financial Holdings Inc.

Capital One’s stock rose 2.1% to $90.95 per share, its highest since May 1. The bank’s shares have shed around 17% since early March as the banking crisis has clobbered shares of U.S. regional lenders.

Morgan Stanley analysts said the selloff of U.S. regional bank stocks was overdone as markets have focused on deposit outflows instead of deposit costs, a better gauge of their financial stability.

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