Berkshire Hathaway Reduces Stake in Bank of America by $2.3 Billion Amid Investment Strategy Shift

Berkshire Hathaway, the investment firm led by Warren Buffett, has recently made significant changes to its holdings in Bank of America. Over a span of six consecutive trading days, the company sold off 52.8 million shares, amounting to $2.3 billion. This move reduces Berkshire’s stake in Bank of America to 12.5%. The latest sales, conducted between Monday and Wednesday, involved the disposal of 18.9 million shares at an average price of $42.46, which brought in approximately $802.5 million.

Despite this reduction, Berkshire Hathaway maintains a substantial investment in Bank of America, with 980.1 million shares still held, valued at around $41.3 billion. However, this investment is overshadowed by Berkshire’s significant holding in Apple, which amounts to $172.5 billion. The dip in ownership of Bank of America marks the first time since late 2019 that Buffett has decreased his stake in the bank, indicating a potential shift in his investment strategy.

Buffett’s decision to sell some of his shares could be influenced by valuation considerations. Bank of America’s stock has performed well this year, climbing over 25%, in contrast to the S&P 500’s nearly 14% increase during the same period. The reduction in stake contrasts with Buffett’s previously favorable comments about Bank of America and its leader, Brian Moynihan. Just last year, he expressed confidence in the bank’s management and operational successes.