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Buffett's Berkshire Hathaway trims Bank of America stake

Published 22/07/2024, 21:30
© Reuters.
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Investing.com - Berkshire Hathaway Inc Class A (NYSE:BRKa), the multinational conglomerate helmed by famed investor Warren Buffett, has divested a substantial portion of its Bank of America (NYSE:BAC) stock. The divestiture, executed over several transactions, totaled approximately $1.48 billion.

Over a three-day period last week, Berkshire Hathaway offloaded 33.9 million shares of Bank of America. Although this reduced the company's holdings by about $1.5 billion, Berkshire Hathaway still holds nearly 1 billion shares of the bank in its portfolio, equating to an almost 13% stake.

The news of the sale led to a drop in Bank of America's shares during intraday trading on Monday, while Berkshire Hathaway's shares remained relatively stable. As per a regulatory filing on Friday, the company sold the shares at per-share prices ranging from $43.13 to $44.07.

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Despite the sell-off, Berkshire Hathaway continues to own approximately 999 million shares of Bank of America, valued at more than $42 billion. This makes Bank of America the second-largest investment in Berkshire Hathaway's portfolio, following Apple (NASDAQ:AAPL).

Bank of America's shares experienced a two-year high last week but have been on a downward trend since then, falling by about 1% as of noon ET Monday.

Despite the recent decline, the bank's shares are still up over 25% year-to-date.

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