Berkshire Hathaway Reduces Stake in Bank of America for Sixth Consecutive Day
- Warren Buffett's Berkshire Hathaway has sold $2.3 billion worth of shares in Bank of America over the past week.
- This marks a significant reduction in their holdings as the sell-off occurred over six consecutive trading days.
- This move may indicate a strategic shift for the conglomerate in its investment approach.
Berkshire Hathaway has continued to decrease its stake in Bank of America, marking the sixth consecutive trading day of share sales. The conglomerate, led by Warren Buffett, sold an additional 18.9 million shares this week, raising approximately $802.5 million at an average price of $42.46 per share. This recent activity brings the total shares sold over the past six trading sessions to 52.8 million, valued at $2.3 billion, reducing Berkshire's ownership in the bank to 12.5%. Despite the reduction, Berkshire still holds a substantial 980.1 million shares of Bank of America, with a market value of $41.3 billion. However, this is significantly less than its $172.5 billion investment in Apple. The company is required to disclose stock transactions when ownership exceeds 10%, which has prompted the recent filings following the sales. Market analysts speculate that Buffett's decision to trim his stake may be driven by valuation concerns, particularly as Bank of America has outperformed the broader market this year, with a stock increase of over 25% in 2024 compared to nearly 14% for the S&P 500. This marks the first reduction in Berkshire's BofA stake since late 2019. Buffett's relationship with Bank of America dates back to 2011 when he invested $5 billion to bolster the bank during its recovery from the financial crisis. Despite recent sales, Buffett has previously expressed admiration for the bank's leadership, particularly CEO Brian Moynihan, indicating a complex sentiment towards the investment.