Warren Buffett’s Berkshire Hathaway has reduced its stake in Bank of America, selling approximately $845 million worth of shares, according to a regulatory filing on Friday. This latest sale involves around 21.1 million shares sold between August 28 and August 30.
Since July, Berkshire Hathaway has divested over $6 billion in Bank of America shares in seven separate transactions. Despite this significant reduction, Berkshire remains the largest shareholder in the bank.
Buffett initially invested in Bank of America in 2011 with a $5 billion purchase of preferred stock, a move that underscored his confidence in CEO Brian Moynihan’s leadership and the bank’s recovery post the 2008 financial crisis. However, in April 2023, Buffett expressed strong support for Moynihan and indicated a reluctance to sell the stock.
Bank of America’s stock has risen 21% this year, slightly underperforming the 22.6% gain seen in the S&P 500 Banks Index, which tracks major banks’ performance.
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