Berkshire Sells More Bank of America Shares, Stake Drops Below 10% – Report

Warren Buffett’s Berkshire Hathaway recently reduced its stake in Bank of America by selling 9.5 million shares, which were valued at approximately $382.4 million, according to a regulatory filing. This transaction has brought Berkshire’s ownership in the banking giant to below 10%.

Under U.S. Securities and Exchange Commission regulations, shareholders owning over a 10% stake in a company are required to report any stock transactions within two business days. With Berkshire’s stake now below this threshold, investors will have to wait for the company’s quarterly financial reports or stock holdings disclosures to learn about any future sales.

The reduction of Berkshire’s holdings in Bank of America commenced in mid-July, when the firm sold around 33.9 million shares for about $1.48 billion. Prior to this, the investment had yielded over $10 billion in profits for the company.

Bank of America is not the only stock that Berkshire has scaled back on; earlier in 2024, the conglomerate also halved its shares in Apple. During Berkshire Hathaway’s annual meeting in May, Buffett articulated that selling stocks could be a strategic move, especially considering potential increases in federal capital gains taxes depending on the upcoming U.S. presidential election.

Berkshire Hathaway’s initial investment in Bank of America dates back to 2011, when Buffett purchased $5 billion worth of preferred stock.