Warren Buffett, the renowned investor and Berkshire Hathaway CEO, has engaged in a significant selling spree of Bank of America (BAC) stocks, with recent transactions amounting to millions of shares. In his latest move, he sold approximately 22 million BAC shares, valued at $863 million, between September 20 and September 24, bringing the total proceeds from Berkshire Hathaway’s sales of Bank of America shares to $9 billion. This selling trend began back in mid-July, with the most recent sale resulting in the company’s stake in Bank of America dropping to 10.5%.
While Buffett has not publicly disclosed the reasons behind his selling activities, portfolio manager Haruki Toyama does not interpret it as a bearish market prediction. Bank of America’s CEO, Brian Moynihan, acknowledged Buffett’s influence on the company, noting uncertainty regarding the reduction in exposure. Meanwhile, Bank of America’s stock price has seen fluctuations, experiencing a decrease in value over the past week and month, ultimately affecting its year-to-date growth.
Buffett’s recent divestment from Bank of America stocks is in line with his prior disinvestment from various U.S. banking institutions, reflecting a strategic shift in his investment portfolio away from the banking sector. This trend aligns with his previous exits from companies like Goldman Sachs, JPMorgan, Wells Fargo, U.S. Bancorp, and Bank of New York Mellon.