This week, Warren Buffett’s Berkshire Hathaway has divested approximately $338 million of its holdings in Bank of America stock. This marks the 13th instance of stock sales since the middle of July, with an average share price of $39.40.
Buffett has refrained from disclosing his motivations for these sales. Berkshire maintains a 10.2% stake in Bank of America, which is valued at over $31 billion, making it the largest shareholder.
The frequency of such sales has diminished in recent transactions. Previously, the average turnover was around $750 million for each round over the preceding months.
Berkshire’s $338 million reduction in BofA
The recent sale constituted less than half of that figure. At 94 years old, Buffett has sold roughly $10 billion of Bank of America stock since mid-July. Additionally, he has reduced his investment in Apple by almost 60% this year.
Possible factors contributing to these sales may include:
– Capitalizing on profits following a price surge
– Adjusting Berkshire’s investment distribution
– Diminished confidence regarding Bank of America’s prospects
– Acquiring liquidity for other ventures
Buffett originally committed $5 billion to Bank of America back in 2011, acquiring preferred shares and warrants for purchasing 700 million common shares. In 2017, he exercised the warrants to purchase over $20 billion in stock for around $5 billion.
Berkshire is required to publicly disclose these sales until its ownership falls below 10%. Subsequent details will be included in quarterly reports. The firm continues to have a varied investment portfolio, encompassing railroads, insurance, and food brands.
