Warren Buffett speaks at Berkshire Hathaway’s annual shareholder meeting on May 4, 2024 in Omaha, Nebraska.
CNBC
Berkshire Hathaway pour more Bank of America Warren Buffett’s group reduced its stake in the bank for six consecutive sessions this week.
The Omaha, Neb.-based holding company sold an additional 18.9 million shares in trading on Monday, Tuesday and Wednesday at an average price of $42.46, raising $802.5 million. New supervision filing show.
Last six trading daysAfterwards, Berkshire sold 52.8 million shares of Bank of America shares worth $2.3 billion, reducing its shareholding ratio to 12.5%. Berkshire Hathaway still holds 980.1 million Bank of America shares Market value $41.3 billionfar behind its holdings worth $172.5 billion apple.
When the stake in any company exceeds 10%, Berkshire must disclose the stock change within two business days after it occurs.
Buffett Charlotte, North Carolina-based Bank of America may be scaling back its bets on valuation concerns after outperforming the market this year. The bank’s shares are set to rise more than 25% by 2024, while the S&P 500 is up nearly 14%.
This is the first time Berkshire has reduced its stake in Bank of America since the fourth quarter of 2019. In 2011, the Oracle of Omaha purchased $5 billion worth of preferred stock and warrants in the bank to bolster confidence in the bank as it battled losses related to subprime mortgages following the financial crisis.
Just last year, Buffett Highly praised He was given the leadership of Bank of America even as he stepped down from other financial institutions. In 2022, Berkshire exits some permanent banking positions, Including JPMorgan Chase, Goldman Sachs, Wells Fargo and U.S. Bank.
“Years ago, I invited myself in and they got us a very decent deal,” Buffett said in 2023. “I liked Brian Moynihan very much, but I just didn’t want to, I didn’t want to sell it.” Owned by Bank of America.
