Berkshire Hathaway, led by Warren Buffett (Trades, Portfolio), disclosed in a regulatory filing the sale of approximately $370 million worth of Bank of America (BAC, Financial) stock this week. This marks the 16th round of sale disclosures since mid-July, resulting in over $10.8 billion in cash and reducing Berkshire's stake in Bank of America to 9.97%.
Last week, Berkshire had reported its stake falling to 9.987%, which is below the 10% regulatory disclosure threshold. However, Bank of America announced a $3.5 billion share buyback for the third quarter, pushing Berkshire's holdings back above the 10% threshold, necessitating another disclosure.
Warren Buffett (Trades, Portfolio), 94, has not commented on the reason behind his selling of Bank of America shares. He has been supportive of Bank of America CEO Brian Moynihan over the years.
In 2011, Buffett invested $5 billion in Bank of America through preferred shares and warrants, aimed at boosting investor confidence post-subprime crisis. In 2017, these warrants were converted into common stock, making Berkshire the largest shareholder. Additional shares were purchased in 2018 and 2019.
Before selling Bank of America shares, Buffett had been divesting long-held bank stocks like JPMorgan Chase, Goldman Sachs, Wells Fargo, and U.S. Bancorp over the past few years.
