Warren Buffett Sells Off BoA Stake

Warren Buffett’s Berkshire Hathaway has significantly reduced its stake in Bank of America, continuing a series of stock sales that began earlier this year. The latest transaction saw Berkshire sell nearly 9.6 million shares of the bank in early October 2024, bringing its ownership to just above 10%, a key regulatory threshold. This marks a strategic move, as the conglomerate aims to stay just within compliance limits while maintaining a substantial investment in the financial giant.

Berkshire’s gradual divestment has been ongoing since mid-2024, during which it sold over 38 million Bank of America shares, capitalizing on the stock’s rise following a strong earnings report in July. The current market value of Berkshire’s remaining stake in Bank of America stands at around $35 billion, making it one of the company’s largest financial holdings.

Buffett’s decision to reduce his position comes as part of broader adjustments to Berkshire’s portfolio, which has also seen shifts in other major investments in recent months. Despite the sales, Berkshire remains Bank of America’s largest shareholder, holding approximately 784 million shares.

The reduction is seen as a strategic recalibration rather than a loss of confidence in the bank, as Bank of America remains a key player in the financial sector and a significant part of Berkshire’s long-term investment portfolio.

This move has attracted attention from investors who are closely watching Buffett’s portfolio for signs of shifting trends in his investment strategy.