Warren Buffett's Berkshire Hathaway cuts stake in Bank of America amid continued stock sales
(MENAFN) Warren Buffett's investment conglomerate, Berkshire Hathaway, has further reduced its holdings in bank of America, selling a substantial portion of its shares in the U.S. bank. Since mid-July, Berkshire has decreased its stake by about 14.5 percent, with the latest filing on Friday revealing that the company sold approximately 21.1 million shares over three consecutive days—Wednesday, Thursday, and Friday. The shares were sold for a total of around USD848 million, at an average price of USD40.24 per share. While Berkshire did not specify the reasons for the reduction in its stake, the sales contribute to a significant accumulation of cash by the company, which, as of June 30, amounted to USD277 billion. From mid-July alone, Berkshire has generated USD6.2 billion from selling Bank of America shares.
Despite these sales, Berkshire Hathaway remains the largest shareholder of Bank of America, retaining an 11.4 percent ownership valued at approximately USD36 billion. Bank of America is the third-largest holding in Berkshire's portfolio, representing about 11 percent of its total investments. Buffett, who celebrated his 94th birthday on Friday, began his investment in the bank with a USD5 billion deal in 2011, acquiring preferred stock and options, a move that has since grown into a significant stake.
In a notable achievement, Berkshire Hathaway became the first U.S. company outside the technology sector to exceed a USD1 trillion market valuation last week. This milestone places the conglomerate in an exclusive group of trillion-dollar firms, alongside tech giants such as Apple, Alphabet, Meta Platforms, and Nvidia. The continued share sales and growing cash reserves highlight Berkshire's strategic financial maneuvering as it navigates an evolving market landscape.
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