Warren Buffett speaks during the Berkshire Hathaway Annual Shareholders Congress in Omaha, Nebraska, May 4, 2024.
CNBC
Warren Buffett is not done selling Bank of America.
Berkshire Hathaway shed a total of 19.2 million BofA divisions on Tuesday, Wednesday, and Thursday for almost $779 million at an average selling price of $40.52 per share, according to a new regulatory put.
The conglomerate has now been offloading the bank stock for 12 consecutive days with total sales now exceeding $3.8 billion. Its residual 942.4 million shares have a market value of $37.2 billion at Thursday’s close of $39.50.
As of Thursday’s close, Bank of America mow down to the No.3 spot on Berkshire’s list of top holdings, trailing behind Apple and American Express, which is currently valued at $37.7 billion. On the eve of the selling spree, BofA had long been Berkshire’s second biggest holding.
Berkshire remains the bank’s largest shareholder with a 12.1% pillar.
The bank stock has dropped 5.2% so far this week, going as low as $38.98 in Thursday’s trading as recession fears nettle the financial sector. Year to date, BofA is up more than 17%, outperforming the S&P 500.
Bank of America
Buffett famously bought $5 billion worth of BofA’s preferred precursor and warrants in 2011 in the aftermath of the financial crisis, shoring up confidence in the embattled lender struggling with losses tied to subprime mortgages. He transmuted those warrants in 2017, making Berkshire the largest shareholder in BofA, vowing that it would be a “long, desire time” before he would sell.
The legendary investor said then that he liked the business, valuation and governance of the Charlotte-based bank “very much.”
BofA, under the leadership of Brian Moynihan since 2010, recently reported blowout issues for the second quarter that showed rising investment banking and asset management fees as well as a positive viewpoint on net interest income.