Berkshire Hathaway cuts stake in Bank of America by 14.5 percent amid ongoing stock sales
(MENAFN) Billionaire Warren Buffett’s investment firm, Berkshire Hathaway, has reduced its holdings in bank of America by approximately 14.5 percent since mid-July, marking a notable shift in its investment strategy. Over the course of Wednesday through Friday, Berkshire sold about 21.1 million shares of Bank of America, valued at approximately USD848 million, with each share averaging USD40.24. This series of sales has contributed to a significant reduction in Berkshire’s stake in the U.S. bank, though the firm has not provided specific reasons for this decision. Despite these sales, Berkshire Hathaway remains the largest shareholder in Bank of America, holding 11.4 percent of its shares, which amounts to around USD36 billion.
Since initiating these sales, Berkshire Hathaway has raised a substantial USD6.2 billion, adding to its already impressive cash reserves, which stood at USD277 billion as of June 30. Bank of America continues to be a major component of Berkshire’s portfolio, ranking as its third-largest holding and representing about 11 percent of its investments. Warren Buffett first invested in Bank of America in 2011, committing USD5 billion in a deal that included preferred stock and options. In recent developments, Berkshire Hathaway reached a significant milestone by becoming the first U.S. company outside the tech sector to exceed a USD1 trillion market value, joining an elite group of trillion-dollar companies such as Apple, Alphabet, Meta Platforms, and Nvidia.
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