Warren Buffett’s Berkshire Hathaway Continues to Sell Bank of America Stock for Six Consecutive Days
Warren Buffett’s Berkshire Hathaway (NYSE: BRK-A, NYSE: BRK-B) has been selling off Bank of America (NYSE: BAC) stock for the past six trading days. The conglomerate sold a total of 52.8 million shares of BAC stock worth $2.3 billion during this period. This comes as a surprise considering Buffett’s previous optimism about the bank.
Buffett’s history with Bank of America dates back to 2011 when he invested $5 billion in the bank. His recent sales mark Berkshire’s first divestment from BAC stock since 2019. Despite assumptions that the sales might be due to the bank’s performance, Bank of America’s shares are up 24% this year, outperforming the S&P 500.
While Buffett has not disclosed the reasons behind his sales, it could be for diversification purposes or in anticipation of a drop in interest rates in September. The banking industry is highly affected by changes in the federal interest rate. Meanwhile, Buffett has been actively acquiring shares of other companies like Occidental Petroleum, Liberty Media Corp Series A, and Liberty Media Corp Series C.
In conclusion, Warren Buffett’s recent sales of Bank of America stock raise questions about his investment strategy. It is essential for investors to stay informed about such moves by prominent figures in the financial world to make informed decisions about their own portfolios.