In a series of stock sales, Warren Buffett, renowned investor and CEO of Berkshire Hathaway, has recently divested millions of Bank of America (BAC) shares, totaling approximately $9 billion. This latest move involved the sale of nearly 22 million BAC stocks, worth $863 million, between September 20 and September 24. Earlier transactions included the sale of 22.3 million BAC stocks for $896 million and 5.8 million shares for $228.65 million. These actions have reduced Berkshire Hathaway’s stake in Bank of America to 10.5%.
While Buffett has not explained his rationale for selling, portfolio manager Haruki Toyama does not interpret it as a pessimistic market prediction. Bank of America’s CEO, Brian Moynihan, acknowledged Buffett’s contribution to the company and expressed uncertainty about the reduction in his holdings. The price per share of Bank of America stock currently sits at $39.13, showing declines over the past week and month but maintaining a year-to-date increase of 15.25%.
Buffett’s recent divestments align with his strategy of gradually disengaging from the U.S. banking industry. This trend follows his prior exits from positions in other major financial institutions, such as Goldman Sachs, JPMorgan, Wells Fargo, U.S. Bancorp, and Bank of New York Mellon.