Billionaire Activist Investor Dan Loeb’s Anti-Buffett Trade — Third Point Buys This Stock as Berkshire Hathaway Slashes Its Major Stake
Key takeaways
- Loeb’s buy and Berkshire’s sell highlight a growing split in confidence over Capital One’s shift to a payments‑focused business, with the stock already outperforming earnings expectations.
- Berkshire sold 4.15 million shares of COF
- Berkshire’s remaining stake: 3 million shares worth $601.9 million
- Third Point added 685,000 shares, now 825,000 shares worth $165.5 million
What happened
Billionaire activist Dan Loeb’s Third Point LLC added 685,000 shares of Capital One Financial Corp., boosting its stake to 825,000 shares worth $165.5 million, while Warren Buffett’s Berkshire Hathaway sold most of its 4.15 million‑share position, leaving 3 million shares valued at $601.9 million.
Why it matters
The move signals a sharp divergence between two of the market’s most watched investors: Loeb is betting on Capital One’s post‑Discover acquisition growth, whereas Berkshire is pulling back from consumer‑credit stocks amid a broader sell‑off. The trade may influence sentiment around the bank‑card‑issuer transition and…
Short-term and longer-term
Short-term. Short‑term traders should watch COF’s price reaction to the Q2 earnings beat and Loeb’s stake increase, as the stock’s 53rd‑percentile momentum may push it higher.
Longer-term. Over the next few months, investors should assess whether Capital One’s transition to a full‑stack payments company translates into sustainable revenue growth and margin expansion.