Berkshire Hathaway likely reduced Bank of America stake further - Barrons

Published 04/08/2025, 20:22
© Reuters.

Investing.com -- Warren Buffett’s Berkshire Hathaway (NYSE:BRKa) (NYSE:BRK.B) appears to have continued reducing its substantial position in Bank of America (NYSE:BAC) during the second quarter, according to Barrons, citing clues in Berkshire’s 10-Q report released Saturday.

While the regulatory filing didn’t explicitly detail individual stock transactions, Barrons reported that financial data suggest Bank of America shares were among those sold. Berkshire reported selling approximately $6.9 billion in stocks during the quarter while purchasing around $4 billion.

These sales generated a pre-tax gain of $5.3 billion, indicating the cost basis of the sold shares was $1.6 billion - less than 25% of their sale price. This aligns with a potential Bank of America sale, as Berkshire’s estimated cost basis for these shares is around $7 each, compared to Bank of America’s average trading price of $42 during the second quarter.

At the end of the first quarter, Berkshire held approximately 631 million Bank of America shares, representing an 8.5% stake in the financial institution. Most of Berkshire’s original position of over 1 billion shares was acquired about a decade ago through warrants with a $7 exercise price.

If confirmed, this would extend Berkshire’s ongoing reduction of its Bank of America holdings, which began in July 2024. The company had already sold nearly 49 million shares, about 7% of its stake, during the first quarter of 2025.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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