Warren Buffet’s Berkshire Hathaway Sells Over $10 Billion in Bank of America Stock

Warren Buffett’s Berkshire Hathaway has made headlines by offloading over $10 billion worth of Bank of America (BAC) stock since mid-July.

This series of sales has brought the investment firm’s stake in BAC below 10%. The recent selling spree included a 16th round where nearly $370 million in shares were sold, which has raised questions about the reasoning behind this significant divestment.

Analysts speculate that the move may be linked to profit-taking, especially given that BAC’s stock has increased by 75% since last October. However, some believe that the decision could also be influenced by taxation logistics.

Investors who hold a 10% stake in a company must report trades to the U.S. Securities and Exchange Commission (SEC) within two days, rather than on a quarterly basis, which could explain Berkshire’s strategy to drop below this threshold.

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Interestingly, Berkshire briefly fell below the 10% stake in early September but repurchased $3.5 billion worth of BAC stock in Q3, pushing their holdings back up momentarily.

Since the start of this selling trend in July, BAC shares have declined by over 4%, prompting speculation about whether Buffett might be considering a complete exit from the position. This situation mirrors past moves by Buffett, who has similarly liquidated holdings in other banks, including JPMorgan and Wells Fargo.

Kosta Gushterov

Kosta has been working in the crypto industry for over 4 years. He strives to present different perspectives on a given topic and enjoys the sector for its transparency and dynamism. In his work, he focuses on balanced coverage of events and developments in the crypto space, providing information to his readers from a neutral perspective.