Berkshire Hathaway Reduces Bank of America Stake for First Time in Over Four Years

Berkshire Hathaway has made a significant move by trimming its stake in Bank of America, marking the first reduction in 4½ years. The conglomerate, led by Warren Buffett, sold 33.9 million shares for nearly $1.5 billion across three days, with an average selling price of $43.56 per share. This decision comes after Bank of America experienced a robust 27.4% increase in stock value this year, reaching its highest point since March 2022. Despite the sale, Bank of America remains Berkshire's second-largest equity position, with 999 million shares valued at approximately $43 billion. The sale reflects Berkshire's strategy of taking profits after a strong performance from Bank of America. In a similar vein, Buffett had previously reduced Berkshire's Apple holdings by 13% in the first quarter for tax reasons, following substantial gains. The recent dip in Bank of America's stock price on Monday suggests market reactions to Berkshire's decision. Warren Buffett's initial investment in Bank of America dates back to 2011 when he purchased $5 billion in preferred stock and warrants to bolster the bank's confidence amid financial turmoil. He famously conceived the idea for this investment while in the bathtub, highlighting his unconventional approach to investment decisions. Buffett has consistently praised Bank of America's CEO, Brian Moynihan, for his leadership and the bank's profitability.