Taylor Herzlich
Billionaire investor Warren Buffett’s Berkshire Hathaway has sold nearly $1 billion in Bank of America shares. This significant move occurred between August 23 and August 27, 2024, as Buffett continues to reduce his stake in the bank. The recent sale involved approximately 24.7 million shares, valued at $981.9 million, bringing Berkshire’s total reduction in Bank of America shares to about $5.4 billion since mid-July.
Despite this sell-off, Bank of America’s stock remains strong, up 17% this year. Berkshire Hathaway’s market cap has surpassed $1 trillion, showcasing investor confidence in the conglomerate Buffett has built over the years.
Key takeaways:
- Berkshire Hathaway sold $982 million in Bank of America shares.
- The recent sale is part of a larger trend of divestment.
- Bank of America’s stock has increased by 17% this year.
- Berkshire Hathaway’s market cap exceeded $1 trillion.
Buffett’s Berkshire Hathaway Reduces Bank of America Stake Significantly
The recent sale of Bank of America shares by Berkshire Hathaway marks a notable change in Warren Buffett’s investment strategy. Once a staunch supporter of the bank, Buffett’s firm has been steadily selling off its shares since mid-July. This shift is surprising given Buffett’s previous praise for Bank of America CEO Brian Moynihan and the bank’s recovery post-2008 financial crisis.
Market Reactions to Berkshire Hathaway’s Recent Share Sales
Despite the recent sell-off, Bank of America’s stock has shown resilience. The stock was up 0.7% early Wednesday morning, reflecting a positive market sentiment. Investors are closely watching how Berkshire Hathaway’s actions will affect the bank’s future performance.
Buffett’s Historical Relationship with Bank of America
Warren Buffett began investing in Bank of America in 2011, purchasing $5 billion in preferred stock. His investment played a crucial role in stabilizing the bank during turbulent times. Over the years, Berkshire Hathaway increased its stake to over 10%, making it the bank’s largest shareholder.
- Initial investment of $5 billion in 2011.
- Increased stake to over 10%.
- Buffett’s support helped stabilize the bank post-2008.
In conclusion, Warren Buffett’s recent decision to sell nearly $1 billion in Bank of America shares reflects a significant change in his investment approach. As Berkshire Hathaway continues to divest, the market will be watching closely to see how this impacts both the bank and Buffett’s overall strategy.
