Berkshire Hathaway Reduces Bank of America Stake, Sells $767 Million in Shares

Warren Buffett's Berkshire Hathaway, Inc. is reducing its stake in Bank of America Corp., one of its key investments. On Monday, the firm announced its third sale of Bank of America shares this month.

Berkshire Hathaway sold 18.42 million shares of Bank of America, valued at approximately $767 million based on the average price of recent transactions. Despite this reduction, the company retains 961.65 million shares, representing a 12.49% ownership in the bank.

Earlier this month, Berkshire also sold:

• 18.90 million shares for about $802.49 million (announced on July 24)
• 33.89 million shares worth $1.48 billion (announced on July 19)

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In total, Berkshire’s sales of Bank of America shares this month amount to 71.21 million shares, valued at $3.24 billion.

As of mid-May, Berkshire Hathaway’s 13-F filing showed a substantial holding in Bank of America, totaling 1.03 million shares worth $39.17 billion at the end of the first quarter. The firm’s portfolio remains heavily weighted in five major stocks: Apple Inc., American Express Co., Coca-Cola Co., Chevron Corp., and Bank of America.

This selling activity occurs amid a favorable outlook for financial stocks, with expectations that the Federal Reserve may lower interest rates, which could enhance Bank of America’s profitability through improved net interest margins and increased trading revenues.

Alexander Stefanov