Warren Buffett Sells $6 Billion Worth of BoA Shares

Berkshire Hathaway, led by Warren Buffett, has offloaded approximately $6 billion in Bank of America stock this summer, significantly reducing its stake in the financial giant. 

The latest filing reveals that Berkshire sold 21.1 million shares of Bank of America over three consecutive days last week, netting $848.2 million at an average price of $40.24 per share. This marks the sixth straight session of sales, contributing to a total reduction of 150.1 million shares, or 14.5% of its Bank of America holdings, since July 17. The average selling price during this period was $41.33 per share.

Despite the sell-off, Bank of America remains Berkshire Hathaway’s third-largest equity holding, representing about 11% of its portfolio. Berkshire continues to be the bank’s largest shareholder, holding 882.7 million shares valued at nearly $36 billion, though its stake is now edging closer to that of Vanguard Group, which holds 639 million shares.

The reason behind the sales remains unclear, as Buffett, who turned 94 last Friday, has previously expressed reluctance to part with Bank of America shares despite concerns about the broader banking sector. As of June 30, Berkshire’s cash reserves reached a record $277 billion, suggesting that the stock sales are part of a broader strategy yet to be disclosed.