Currently holding 10.5% stake in Bank of America.
Warren Buffett's Berkshire Hathaway has sold $0.863 billion worth of Bank of America stocks, bringing its shareholding close to the 10% regulatory threshold.
According to a new document submitted to the SEC on Tuesday evening, Berkshire Hathaway reduced its Bank of America stocks for three consecutive trading days on September 20th, 23rd, and 24th, totaling 21.561 million shares, cashing out approximately $0.863 billion (6.057 billion yuan).
Following this reduction, Berkshire Hathaway holds 10.5% of Bank of America's shares, nearing the 10% regulatory threshold.
According to relevant regulations, if the shareholding exceeds 10%, Berkshire Hathaway needs to submit a document to the SEC disclosing the transaction details within two business days; if the shareholding does not exceed 10%, there is no need for immediate disclosure, usually waiting for several weeks to disclose in quarterly reports.
To avoid submitting documents, Berkshire Hathaway needs to reduce its shareholding to below 0.776 billion shares.
Warren Buffett, CEO of Berkshire Hathaway, appears to intend to reduce the shareholding to below 10%, or even lower. There are reports that Berkshire Hathaway may stop selling shares when its shareholding reaches 0.7 billion shares—the initial shares acquired in Bank of America in 2017.
Berkshire Hathaway has reduced its holdings of the company's stocks in the past six trading days. Since reducing its stocks two months ago, its shareholding has decreased by over 20%, about 0.22 billion shares.
Even after months of selling off, Berkshire's remaining shareholding of Bank of America is still valued at 32.1 billion US dollars. Based on Tuesday's closing price, it still maintains its position as the largest shareholder.
Bank of America's stock price fell by 1% on Tuesday, to $39.45. Since Berkshire began significant shareholding in mid-July, the stock has dropped by about 10%.
Buffett has not provided any explanation for the selling reasons so far.
An important response comes from Bank of America's CEO, Brian Moynihan.
As a "person involved" and CEO often praised by Buffett, Moynihan talked about Buffett continuously selling BofA shares at an investor conference held in New York on Tuesday, September 10. He first praised Warren Buffett as a great investor, then said he has not asked this legendary investor why he keeps reducing his BofA shares.
Moynihan stated: "Buffett has always been a great investor in our company, stabilizing our company. But I don't know what he's doing because, to be honest, we can't ask."