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Berkshire Hathaway sells Bank of America shares worth $982m

Published 28/08/2024, 10:54 pm
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Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) has sold an additional $982 million worth of Bank of America (BofA) stock, continuing to reduce its stake in the bank.

Since mid-July, Berkshire has decreased its holdings in Bank of America Corp (NYSE:BAC) by nearly 13%, generating $5.4 billion from the sales. The latest transactions, revealed in a regulatory filing on Tuesday, detail sales that occurred on August 23, 26, and 27.

Despite the reduction, Berkshire Hathaway B (NYSE:BRKb) remains the largest shareholder of the bank, holding 903.8 million shares valued at $35.9 billion based on Tuesday's closing price.

BofA’s shares slipped 0.6% In premarket trading Wednesday. The stock advanced more than 17% this year, in line with the broader market’s performance.

Warren Buffett, one of the most respected investors globally, began his investment in Bank of America in 2011 by purchasing $5 billion in preferred stock. At the time, some investors were concerned about the bank's capital requirements.

This series of sales marks Buffett’s most significant reduction in a long-standing investment that has been seen as a strong endorsement of Bank of America’s leadership under CEO Brian Moynihan, whom Buffett has publicly praised on several occasions.

"I like Brian Moynihan enormously," Buffett told CNBC last year. "I don't wanna sell it."

Recent securities filings revealed that Berkshire made several adjustments in its portfolio during the second quarter.

The conglomerate purchased stakes in Ulta Beauty (NASDAQ:ULTA) and Heico Corporation (NYSE:HEI) while reducing its holdings in Apple (NASDAQ:AAPL) and Chevron (NYSE:CVX) during the same period.

Meanwhile, Berkshire also fully exited its positions in some companies, including Snowflake (NYSE:SNOW).

It also reduced holdings in Capital One Financial Corporation (NYSE:COF), Floor & Decor Holdings Inc (NYSE:FND), and T-Mobile US Inc (NASDAQ:TMUS), while adding to stakes in Occidental Petroleum (NYSE:OXY) and Chubb (NYSE:CB).

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