Warren Buffett’s Berkshire Hathaway has been consistently selling Bank of America shares over the past 12 days. The conglomerate recently sold 19.2 million BofA shares, amounting to nearly $779 million. This move has brought the total sales of BofA stock to over $3.8 billion. Despite the sales, Berkshire still holds 942.4 million shares of Bank of America, with a market value of $37.2 billion.
Following the recent selling spree, Bank of America has slipped to the No.3 spot on Berkshire’s list of top holdings. It now trails behind Apple and American Express, which are valued at $37.7 billion. Before the sell-off, BofA was Berkshire’s second biggest holding. Berkshire still remains the largest shareholder of Bank of America, owning a 12.1% stake in the bank.
Bank of America’s stock has seen a decline of 5.2% this week, with prices dropping to as low as $38.98 in Thursday’s trading session. The financial sector as a whole is facing recession fears, contributing to the downward trend in BofA’s stock. Despite this week’s dip, the stock has seen a year-to-date increase of over 17%, outperforming the S&P 500 index.
Warren Buffett famously invested $5 billion in BofA’s preferred stock and warrants back in 2011, during the aftermath of the financial crisis. This move helped boost confidence in the struggling lender, which was dealing with losses from subprime mortgages. Berkshire converted those warrants in 2017, becoming the largest shareholder in Bank of America. Buffett had previously expressed confidence in BofA’s business, valuation, and management.
Under the leadership of Brian Moynihan since 2010, Bank of America has reported strong results for the second quarter. The bank saw increases in investment banking and asset management fees, along with a positive outlook on net interest income. Despite the challenging market conditions, BofA has demonstrated resilience and potential for growth.
Warren Buffett’s continued selling of Bank of America stock highlights the evolving investment strategies of Berkshire Hathaway. While the financial sector faces uncertainties, BofA’s recent performance and outlook suggest that it remains a strong player in the industry. Buffett’s history with the bank and his past investments reflect his confidence in its long-term potential.