Bank of America (NYSE:BAC) shares are trading higher on Friday. Warren Buffet's Berkshire Hathaway (NYSE:BRK) sold more of its shares in the bank, bringing its stake below 10%.
The Details: According to a Securities and Exchange Commission (SEC) filing, Berkshire Hathaway sold a total of 9.5 million Bank of America shares at an average price of $40.04 per share.
Berkshire made this move via three separate sales throughout the week with 3.9 million shares sold on Tuesday, 4 million shares sold on Wednesday and 1.6 million shares sold on Thursday.
Berkshire now holds a 9.98% stake in the bank which is equivalent to 775 million shares. Now that Berkshire Hathaway's stake in Bank of America is below 10%, the company is no longer required to promptly report these transactions to the SEC.
Berkshire has been slowly selling off its Bank of America shares for quite some time now. Back in August, the company sold shares worth than $550 million. Berkshire also sold Bank of America Shares in September and July.
Bank of America is not the only bank to experience a selloff of its shares by Berkshire. Buffet's Berkshire Hathaway has been unloading shares in companies across the banking industry for years. In 2022, Berkshire sold its remaining Wells Fargo shares. Furthermore, throughout 2020, Berkshire dumped its stake in JPMorgan Chase.
This could indicate that Buffet sees more value in stocks outside the banking industry. According to CNN, Berkshire bought stake in Verizon and Chevron after it sold its shares in JPMorgan Chase.
How To Buy Bank of America Stock
Besides going to a brokerage platform to purchase a share – or fractional share – of stock, you can also gain access to shares either by buying an exchange traded fund (ETF) that holds the stock itself, or by allocating yourself to a strategy in your 401(k) that would seek to acquire shares in a mutual fund or other instrument.
For example, in Bank of America (NYSE:BAC)'s case, it is in the Financials sector. An ETF will likely hold shares in many liquid and large companies that help track that sector, allowing an investor to gain exposure to the trends within that segment.
BAC Price Action: At the time of writing, Bank of America stock is trading 4.94% higher at $41.95 per data from Benzinga Pro
