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Buffett's Berkshire continues to dump Bank of America stake

Published 06/09/2024, 13:32
© Reuters.
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Investing.com -- Warren E. Buffett’s Berkshire Hathaway (NYSE:BRKa). has further reduced its stake in Bank of America (NYSE:BAC)., selling 18.7 million shares over a three-day period from September 3 to September 5. 

The transactions, which raked in about $760 million, mark the latest in a series of sales that have significantly trimmed Berkshire's stake in the nation's second-largest bank.

The recent sales occurred across three days, with share prices ranging from $40.2837 to $40.6595. 

These latest sales bring Berkshire’s total liquidation of Bank of America shares since mid-July to nearly $7 billion. 

Berkshire continues to be BofA's biggest shareholder and per regulatory requirements, Berkshire Hathaway has to keep reporting sales regularly until its holding falls below 10%.

Buffett's long standing relationship with Bank of America dates back to 2011, when he made a $5 billion investment in preferred stock. 

That high-profile vote of confidence came as the bank was still reeling from the aftermath of the 2008 financial crisis, and was seen as an endorsement of CEO Brian Moynihan's leadership. 

The recent sales come as Bank of America’s stock has risen roughly 18% this year, slightly lagging the broader S&P 500 Banks Index, which has gained around 21%. 

 

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