Warren Buffett’s investment conglomerate, Berkshire Hathaway, continues to trim its stake in Bank of America (BAC), as revealed by recent regulatory filings. As of October 15, the company sold approximately 8.7 million shares of Bank of America, worth $370 million. This follows the sale of 9.5 million shares last week, bringing the total stake to below 10%.
Since mid-July, Berkshire Hathaway has been steadily reducing its position in Bank of America, with cumulative sales amounting to more than $10 billion. The selloff began when Buffett’s firm offloaded 33.9 million shares for around $1.48 billion. These actions signal a significant move by the renowned investor, often referred to as the Oracle of Omaha.
Berkshire Hathaway first invested in Bank of America in 2011, purchasing $5 billion worth of preferred stock during the aftermath of the financial crisis. The banking giant has been a staple in Buffett’s portfolio, but the recent trimming of shares has raised questions about Berkshire’s long-term outlook for the financial sector.
Despite the selloff, Buffett continues to hold a substantial interest in the bank. However, the financial sector’s performance, especially banking stocks, has been under pressure, potentially influencing Buffett’s decision to rebalance the portfolio.
This move comes amid a broader strategy where Berkshire Hathaway has been reallocating its portfolio, also investing in sectors like technology and energy. Investors are closely watching Buffett’s actions as a guide to navigating the current market environment.
