In a recent series of moves involving Bank of America (NYSE: BAC) stocks, Warren Buffett, the renowned investor and CEO of Berkshire Hathaway (NYSE: BRK.A), has continued selling off millions of BAC shares through his company. This latest transaction amounted to nearly 22 million shares and approximately $863 million in value, carried out between September 20 and September 24. The total divestment of Bank of America shares by Berkshire Hathaway has now reached $9 billion, as indicated by TipRanks data on September 25.
Buffett’s recent actions include the sale of 22.3 million BAC shares a week ago, resulting in a profit of $896 million. Prior to that, Berkshire Hathaway offloaded around 5.8 million Bank of America shares, valued at $228.65 million during the period between September 6 and September 10. Berkshire, being the largest shareholder of Bank of America, initiated its selling streak of BAC stocks back in mid-July this year, parting with a substantial $9 billion over multiple trading sessions. This latest sale has reduced the company’s stake in Bank of America to 10.5%.
The rationale behind Buffett’s move remains undisclosed. While Haruki Toyama, portfolio manager and head of the Mid and Large Cap Team at Madison Investments, does not interpret it as a bearish market call, he acknowledges Buffett’s history of making market evaluations sparingly. In a recent statement, Bank of America’s CEO Brian Moynihan commended Buffett as a “great investor” who has influenced the stability of the company, expressing uncertainty over the reasons behind the reduced exposure.
At present, the price of Bank of America shares stands at $39.13 per share, reflecting a 0.24% daily decline, a 3.53% drop over the week, a 1.97% decrease over the month, and a year-to-date growth of 15.25%, according to the latest available data. Buffett’s substantial divestment from BAC aligns with a broader trend of exiting investments in various U.S. banking institutions, including Goldman Sachs (NYSE: GS), JPMorgan (NYSE: JPM), Wells Fargo (NYSE: WFC), U.S. Bancorp (NYSE: USB), and Bank of New York Mellon (NYSE: BK).