Buffett's Berkshire Continues to Trim Bank of America Stake

Warren Buffett's Berkshire Hathaway (BRK/B:US) has sold shares worth $228.7 million in Bank of America (BAC:US), continuing its reduction of holdings in the U.S.'s second-largest lender. The conglomerate disclosed on Tuesday that it sold about 5.8 million BAC shares between September 6 and September 10, raising the total shares sold since mid-July to approximately 174.7 million, amounting to $7.19 billion, according to LSEG data.

Despite these sales, Berkshire remains Bank of America's largest shareholder, currently holding 11.1% of the company's shares. Berkshire must continue reporting sales until its holding drops below 10%. Buffett, one of the world's most renowned investors, initially invested in Bank of America in 2011, purchasing $5 billion worth of preferred stock.

The recent stake reduction follows more than a year after Buffett publicly praised Bank of America and its CEO, Brian Moynihan. Moynihan stated on Tuesday that while Buffett has been a "great" investor for the bank, he has not inquired about the reasoning behind the recent share sales. "I don't know what exactly he is doing because frankly, we can't ask," Moynihan mentioned during a financial conference in New York.

A Deutsche Bank analyst suggested last week that Berkshire may aim to reduce its stake just below the 10% reporting threshold to avoid additional regulatory scrutiny. Shares of Bank of America fell 0.8% in premarket trading on Wednesday, and the stock has underperformed compared to broader market trends since Berkshire began its selling activity.

On a congressional-related note, recent disclosures revealed that Representative Ro Khanna purchased shares of both Berkshire Hathaway and Bank of America in August 2024, while Congressman John James sold shares of both companies in September 2024.