Berkshire Hathaway Sells More Bank of America Shares as CEO Praised by Buffett
Warren Buffett’s investment firm, Berkshire Hathaway, has sold off a significant portion of its Bank of America shares, totaling over $7 billion since mid-July and reducing its stake to 11%. The conglomerate unloaded 5.8 million BofA shares in multiple sales, fetching nearly $228.7 million at an average selling price of $39.45 per share. This selling streak marks 12 consecutive sessions, matching a similar period in July.
With over 174.7 million BofA shares sold, Berkshire now holds 11.1% of shares outstanding, placing Bank of America in the third spot on Berkshire’s list of top holdings behind Apple and American Express. Previously, BofA had been Berkshire’s second-largest holding.
In a rare comment, BofA CEO Brian Moynihan stated that he has no insight into Buffett’s motivations for selling the shares. He mentioned that while they can’t inquire about Buffett’s decisions, the market is absorbing the stock, and life will continue as usual.
Warren Buffett’s initial investment in BofA’s preferred stock and warrants in 2011, following the financial crisis, made Berkshire the largest shareholder in the bank. The subsequent addition of 300 million more shares solidified Buffett’s position. Moynihan praised Buffett’s strategic investment, noting that if investors had followed Buffett’s lead in buying BofA stock in 2011, they would have acquired shares at $5.50, compared to the current price of nearly $40 per share.
Despite the recent sell-off by Berkshire Hathaway, Bank of America shares have only dipped around 1% since July, showing a year-to-date increase of 16.7%, slightly outperforming the S&P 500. Moynihan acknowledged Buffett’s significant impact on stabilizing the bank during a challenging period and reiterated the value of Buffett’s investment strategy.
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Emily Jensen, graduated from the London School of Economics and Political Science (LSE) in the UK in 2015 with a degree in Economics. She specializes in financial markets and international trade. After graduating, she worked as an analyst at an investment bank in London, where she developed expertise in global economic trends. She later transitioned into consulting, focusing on fintech ventures and providing insights into global economic developments. Emily is passionate about the intersection of finance and technology and aims to drive innovation in the financial sector.