Warren Buffett has made a remarkable move by selling off an astounding $10.5 billion worth of Berkshire Hathaway’s stake in Bank of America over the course of a few months. According to recent filings with the U.S. Securities and Exchange Commission, the firm sold an additional 8.54 million shares in September and October, valued at $337.86 million.
This decision follows Berkshire’s complete divestment from JPMorgan Chase and Wells Fargo in recent years and marks the 15th round of relentless sales of Bank of America shares. As a result, Berkshire’s overall stake in the bank has dropped below 10%, as reported by Fortune.
The significance of this threshold lies in the fact that Berkshire will now be able to report its Bank of America trades on a quarterly basis instead of every few days. This means that investors will have to wait until mid-November to find out if Berkshire continues to sell.
Buffett has not explicitly stated why he has reduced the firm’s exposure to Bank of America, but he did express his concerns about the banking sector as a whole last year. He highlighted the uncertainty surrounding the stability of deposits and emphasized the need for caution when it comes to owning banks.
Despite the sell-off, Berkshire still remains the largest shareholder of Bank of America, with its position in the financial giant now valued at around $31 billion.
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