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Buffett sells 13.9 million shares of his Bank of America stake
(MENAFN) Warren Buffett has continued to reduce Berkshire Hathaway’s investment in Bank of America, offloading an additional 13.9 million shares of the bank, valued at approximately USD550.7 million, over the past three trading days. This recent divestiture has brought Berkshire Hathaway's ownership in Bank of America down to 11.9%. As per regulatory requirements, any transactions that adjust the stake to more than 10% must be reported within two business days, which is why these details were disclosed by CNBC yesterday.
Buffett’s involvement with Bank of America began in 2011 when he invested USD5 billion in preferred stock and warrants, a move that was instrumental in stabilizing the bank during the financial crisis that followed the subprime mortgage debacle. These warrants were converted into common stock in 2017, further solidifying Berkshire’s stake. The latest sale follows a period of significant selloff in Bank of America shares, with a notable 12-day decline observed in mid-July.
This ongoing reduction in Berkshire Hathaway’s stake highlights a strategic shift in Buffett's investment approach. The move to decrease the holdings comes amid broader market fluctuations and reflects a potential reevaluation of the bank's performance and future prospects. Buffett’s decision to cut back on this investment underscores the dynamic nature of his portfolio management and his adaptability to changing market conditions.
Buffett’s involvement with Bank of America began in 2011 when he invested USD5 billion in preferred stock and warrants, a move that was instrumental in stabilizing the bank during the financial crisis that followed the subprime mortgage debacle. These warrants were converted into common stock in 2017, further solidifying Berkshire’s stake. The latest sale follows a period of significant selloff in Bank of America shares, with a notable 12-day decline observed in mid-July.
This ongoing reduction in Berkshire Hathaway’s stake highlights a strategic shift in Buffett's investment approach. The move to decrease the holdings comes amid broader market fluctuations and reflects a potential reevaluation of the bank's performance and future prospects. Buffett’s decision to cut back on this investment underscores the dynamic nature of his portfolio management and his adaptability to changing market conditions.
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