According to a regulatory agency document disclosed on Friday evening, Berkshire Hathaway, owned by Buffett, once again reduced its holdings in Bank of America, selling approximately $0.845 billion worth of shares.
According to a regulatory agency document disclosed on Friday evening, billionaire Warren Buffett's$Berkshire Hathaway-B (BRK.B.US)$reduced holdings again$Bank of America (BAC.US)$, selling approximately $0.845 billion worth of shares, and the shareholding ratio has dropped to 11.4%. Since July, this conglomerate operated by one of the most respected investors in the world has sold over $6 billion worth of stock of the second largest bank in the USA in seven rounds of shareholding reduction.
Berkshire Hathaway, the largest shareholder of Bank of America, disclosed that it sold approximately 21.1 million shares of Bank of America stock between August 28th and August 30th.
Warren Buffett, 94, acquired preferred stock and warrants in Bank of America for $5 billion in 2011, initiating his investment in the bank. His Berkshire Hathaway company eventually became and still remains the largest shareholder of the bank, with its holdings valued at approximately $36 billion based on Friday's closing price.
At that time, Berkshire Hathaway purchased $5 billion of Bank of America preferred stock, showing his confidence in CEO Brian Moynihan's ability to revive the bank after the 2008 financial crisis. In April 2023, Buffett told CNBC that he "really liked" Moynihan and did not want to sell the bank's stock at that time.
Since the beginning of the year, Bank of America's stock price has risen by 21%, while the S&P 500 Banks Index, which tracks the performance of large banks, has risen by 22.6% during the same period.
It is worth mentioning that if Buffett chooses to continue reducing his investment, Berkshire Hathaway will no longer need to quickly disclose the news of its consecutive sales of Bank of America stock. As long as Berkshire Hathaway holds more than 10% of the shares, US regulations require it to disclose the transaction within a few days. However, if the company holds fewer shares, it may wait a few weeks to release the latest news to the public, usually after each quarter.
This will help to calm the dramatic events that have been troubling the stock price of Bank of America since mid-July, when Moynihan's long-time supporter Buffett sold off a large amount without giving a reason.
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