Warren Buffett’s Berkshire Hathaway Continues to Sell Bank of America Shares

Warren Buffett’s Berkshire Hathaway has sold more shares of Bank of America over the last week, signaling a continued pullback from one of its biggest bets. This move comes after a significant runup in the bank’s stock price.

Selling Activity

In a filing on Monday, Berkshire Hathaway revealed that it sold approximately 18.41 million shares of Bank of America between July 25 and July 29. This follows the sale of about 34 million shares earlier this month when Bank of America shares reached a two-year high after an impressive earnings beat.

Retaining a Large Stake

Despite the recent cuts, Berkshire Hathaway still retains a significant stake in Bank of America. The company currently owns approximately 961.65 million Bank of America shares, valued at around $39.51 billion based on the bank’s closing price of $41.09 on Monday.

With this stake, Berkshire Hathaway holds about 12.3% of Bank of America, making it the company’s second-largest holding after Apple.

Reasons for the Sales

The decision to sell Bank of America shares comes after the bank’s stock price surged following an impressive earnings report, driven by growth in investment banking. Bank of America shares reached their highest point in over two years but have since declined by about 5% to $41.60 as of Tuesday morning.

It is important to note that Berkshire Hathaway’s Class B shares remained relatively unchanged following the news. They edged 0.5% higher to $440.48, which is below the record levels reached earlier this month.

Conclusion

Warren Buffett’s Berkshire Hathaway continues to reduce its stake in Bank of America, selling millions of shares over the past week. Despite the cuts, Berkshire Hathaway still holds a substantial position in the bank, making it the second-largest holding in its portfolio. The decision to sell shares comes after Bank of America’s stock price soared following an impressive earnings beat. It remains to be seen how these sales will impact Berkshire Hathaway’s overall investment strategy and whether it indicates a lack of confidence in the bank’s future prospects.

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