Warren Buffett, renowned investor and CEO of Berkshire Hathaway, continues his spree of selling Bank of America (BAC) shares by offloading millions more through his company. The most recent sale, amounting to about $863 million, brings the total value of BAC shares sold by Berkshire Hathaway to a staggering $9 billion. This move marks Buffett’s ongoing divestment in BAC, with his company reducing its stake in the bank to 10.5% after selling a significant amount of shares in various trading sessions.
Despite the considerable sell-off, Buffett has not publicly disclosed the exact reasons behind his actions. Analysts like Haruki Toyama speculate that this may not necessarily reflect a negative outlook on the market, citing Buffett’s historical tendencies to make bold statements about market conditions, which he has not done recently. Meanwhile, Bank of America’s CEO acknowledges Buffett’s role in stabilizing the company and expresses uncertainty regarding the motive behind the reduction in exposure.
As Bank of America’s stock price faces fluctuations, currently standing at $39.13 per share, Buffett’s divestment seems to align with a larger trend of pulling back from the U.S. banking sector. This move echoes previous exits from positions in major banks like Goldman Sachs, JPMorgan, Wells Fargo, U.S. Bancorp, and Bank of New York Mellon.