In Short:
Warren Buffett sold nearly $982 million of Bank of America stock, reducing his investment by almost 13% since mid-July. This has generated $5.4 billion in sales. Despite the shares rising 31% this year, they have recently dropped 10%. Buffett remains quiet about his reasons but continues to be Bank of America’s largest shareholder, owning 903.8 million shares valued at $35.9 billion.
Buffett’s Strategic Shift: A Major Move on Bank of America Stocks
In a surprising turn of events, **Warren Buffett** has decided to part with an impressive $982 million worth of **Bank of America Corp.** shares. This decision comes as his conglomerate, **Berkshire Hathaway Inc.**, continues to reduce its stake in the nation’s second-largest bank.
A Significant Trim in Stake
Since mid-July, Buffett’s investment firm has slashed its holdings by nearly 13 percent, raking in a whopping $5.4 billion from successive sales. The latest round of shares was disclosed in a regulatory filing late on Tuesday, revealing transactions that took place on August 23, 26, and 27.
The Mystery Behind the Moves
Despite the significant sales, Buffett has remained tight-lipped about his reasoning for reducing this lucrative investment—a stake that began back in 2011 when the stock was trading at around $5. This year, shares had soared by an impressive 31 percent before the recent sell-off. However, they’ve since experienced a 10 percent decline, settling at $39.67.
A Shift in Confidence?
This consecutive selling spree marks Buffett’s most considerable retreat from an investment that was once seen as a strong endorsement of **Bank of America** and its CEO, **Brian Moynihan**. Buffett has often praised Moynihan in the past, highlighting the CEO’s leadership capabilities.
Berkshire’s Enduring Position
Despite this recent downsizing, **Berkshire Hathaway** still holds the title of the bank’s largest stockholder, owning 903.8 million shares valued at approximately $35.9 billion, based on the closing price from Tuesday.
