Berkshire Hathaway Cuts Stake in Bank of America

(Reuters) – Billionaire Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) has once again reduced its stake in Bank of America, selling shares worth approximately $845 million, according to a regulatory filing released on Friday.

The conglomerate, led by one of the world’s most esteemed investors, has offloaded more than $6 billion worth of shares in the second-largest U.S. bank through seven share sales since July.

Berkshire, which is Bank of America’s largest shareholder, revealed that it sold about 21.1 million shares of the bank between August 28 and August 30.

Buffett began his investment in the bank in 2011 when Berkshire purchased $5 billion in preferred stock. This move demonstrated his confidence in CEO Brian Moynihan’s ability to rehabilitate the lender following the 2008 financial crisis.

In April 2023, Buffett expressed to CNBC that he had a high regard for Moynihan and wasn’t inclined to sell the bank’s stock at that time.

BofA shares have seen a 21% increase this year, contrasting with a 22.6% rise in the S&P 500 Banks Index, which monitors the performance of large-cap banks.