Berkshire Hathaway, the investment conglomerate led by Warren Buffett, has been on a selling streak with its significant Bank of America stake. Over the course of nine consecutive trading days, Berkshire has sold a total of 71.2 million shares, amounting to over $3 billion in sales. The most recent regulatory filing revealed that Berkshire sold 18.4 million shares of BofA for $767 million at an average price of $41.65.
Despite remaining the second-largest equity holding in Berkshire’s portfolio after Apple, Bank of America’s position could potentially fall behind third-place American Express if the conglomerate continues to offload its shares. Berkshire still holds 961.6 million shares of BofA, representing a 12.3% stake in the bank.
Warren Buffett’s involvement with Bank of America dates back to 2011 when he purchased $5 billion worth of the bank’s preferred stock and warrants in the aftermath of the financial crisis. This move helped boost confidence in the struggling lender, which was grappling with losses from subprime mortgages. Buffett converted his warrants in 2017, solidifying Berkshire’s position as the largest shareholder in Bank of America.
Berkshire’s cost basis on its Bank of America position was approximately $14.15 per share, totaling $14.6 billion at the end of 2021. By the end of March, the holding had appreciated to $39.2 billion. With Bank of America’s stock closing at $41.09 on Monday, Berkshire may be looking to take profits after the bank’s strong performance, which saw a 22% rally in 2024, outpacing the S&P 500’s return of 14.5%.
Berkshire Hathaway is scheduled to release its second-quarter earnings on Saturday morning, providing further insights into the conglomerate’s largest holdings, including its Bank of America stake. Investors will be closely watching for any additional developments regarding Berkshire’s selling activity and its overall investment strategy amid the changing market conditions.