Berkshire Hathaway, led by Warren Buffett, has decreased its ownership in Bank of America to 9.99%. The company divested 9.5 million shares from Tuesday to Thursday, which resulted in profits estimated at $382 million. This most recent disposal concludes a three-month phase during which Berkshire sold a total of 257 million shares.
These transactions have generated approximately $10 billion for the firm. Berkshire continues to be the largest shareholder in Bank of America, holding over 775 million shares worth around $31 billion. Nonetheless, by falling below the 10% mark, Berkshire is no longer obligated to promptly disclose changes in its holdings to the SEC.
Since Berkshire began its sell-off, Bank of America’s stock price has decreased by more than 9%.
Berkshire reduces its interest in Bank of America
Despite this, the stock is still up over 18% for the year but lags behind rivals such as Goldman Sachs, JPMorgan Chase, and Citigroup.
The bank is slated to release its third-quarter results on Tuesday. Market analysts predict that profits will decline compared to both last year and the previous quarter. However, CFO Alastair Borthwick has recently indicated that net interest income is expected to rise from Q3 through the end of the year.
Buffett has a long-standing relationship with Bank of America. In 2011, he injected $5 billion into the faltering bank following the financial crisis, showing support for CEO Brian Moynihan. As of June, Bank of America constituted 15% of Berkshire’s portfolio, ranking as its third-largest holding after Apple and American Express.
Moynihan recognized Buffett’s influence, stating: “He’s been a remarkable investor for our firm and helped stabilize us when we were in need.”
