Recent regulatory filings show that Berkshire Hathaway, led by Warren Buffett, has been steadily selling off Bank of America shares over the past 12 consecutive days. The conglomerate recently shed 19.2 million BofA shares totaling almost $779 million. This continuous selling streak has resulted in total sales surpassing $3.8 billion.
As a result of this selling spree, Bank of America has dropped to the No.3 spot on Berkshire’s list of top holdings, behind Apple and American Express. The remaining 942.4 million shares have a market value of $37.2 billion at the current trading price. This shift marks a significant change in Berkshire’s investment portfolio, as BofA was previously the conglomerate’s second biggest holding.
Warren Buffett’s relationship with Bank of America dates back to 2011 when he famously bought $5 billion worth of BofA’s preferred stock and warrants after the financial crisis. This investment played a crucial role in restoring confidence in the struggling lender. Despite converting those warrants in 2017 and becoming the largest shareholder in BofA, Buffett maintained his commitment to the bank, stating that he liked the business, valuation, and management of Bank of America.
Bank of America, under the leadership of Brian Moynihan, has recently reported strong results for the second quarter. The bank showed an increase in investment banking and asset management fees, along with a positive outlook on net interest income. However, despite these positive developments, BofA’s stock has taken a hit, dropping 5.2% this week due to recession fears plaguing the financial sector.
Berkshire Hathaway’s continued selling of Bank of America shares raises questions about Warren Buffet’s investment strategy and outlook on the financial sector. The shift in Berkshire’s portfolio towards tech giants like Apple and financial services companies like American Express may indicate a broader trend in the conglomerate’s investment direction. As the legendary investor continues to adjust his holdings, the market will be closely watching for any further developments in Berkshire’s investment decisions.
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