Buffett’s Berkshire Hathaway Sells Additional Shares in Bank of America

Warren Buffett’s Berkshire Hathaway has recently sold additional shares of Bank of America, increasing the total amount received from stake sales since July to approximately $9 billion.

A regulatory filing revealed that between September 20 and September 24, Berkshire sold around 21 million shares, generating around $863 million. Earlier in the month, the conglomerate had already offloaded roughly 45.6 million shares in different transactions.

With this latest sale, Berkshire’s stake in Bank of America has decreased to 10.5%, valued at about $32.13 billion. As the largest shareholder, Berkshire is still required to report its stake regularly. Should its holdings drop below 10%, these reporting obligations would cease. Analysts have suggested that Berkshire may be trying to reduce its holdings below this threshold to avoid potential regulatory scrutiny.

Although Buffett has not publicly clarified the reasons for reducing his interest in Bank of America, he has spoken positively about the bank in the past. Buffett initially invested $5 billion in preferred stock and warrants in the bank back in 2011, and he later converted this investment into common shares following an increase in the bank’s dividend.

When asked about Berkshire’s recent share sales, Bank of America’s CEO Brian Moynihan mentioned that he is not in a position to discuss the matter with Buffett. He acknowledged that he cannot inquire directly about his intentions but referred to Buffett as a “great” investor for the bank.

Shares of Bank of America remained largely unchanged in premarket trading.