Billionaire investor Warren Buffett's Berkshire Hathaway is continuing to reduce its holdings in Bank of America, the second-largest U.S. bank, selling $1 billion worth of the company.
The conglomerate sold about 24.7 million shares of Bank of America stock between last Friday and Tuesday, for a total of $981.9 million, according to a regulatory filing on Tuesday.
Berkshire has sold about $5.4 billion worth of Bank of America shares in a series of sales since mid-July.
Bank of America shares were up 0.7% early Wednesday and have risen 17% this year.
Meanwhile, Berkshire Hathaway's market capitalization surpassed $1 trillion on Wednesday, reflecting investor confidence in the conglomerate that Buffett built over nearly six decades and that many consider synonymous with the American economy.
Berkshire joins six other companies worth more than $1 trillion, mostly in the technology sector: Apple, Nvidia, Microsoft, Google-parent Alphabet, Amazon.com Inc. and Facebook-parent Meta Platforms.
Berkshire's selling marks a sharp turn from last year, when the 93-year-old man known as a “prophet” and “Oracle of Omaha” praised Bank of America and Brian Moynihan, who became its CEO in 2010.
“I like Brian Moynihan a lot,” Buffett told CNBC in April 2023. “I don't want to sell.”
But Berkshire Hathaway has been steadily reducing its longtime stake in the Charlotte, North Carolina-based financial company.
The firm began investing in major U.S. banks in 2011, buying $5 billion worth of preferred stock.
Buffett's involvement with the bank coincided with its struggles after the 2008 financial crisis, and his investment helped ease investor concerns and boost the stock price.
Berkshire Hathaway eventually increased its stake in the bank to more than 10%.
Despite its recent divestitures, the company remains Bank of America's largest shareholder: Based on Tuesday's closing price, Buffett's company holds 903.8 million shares, valued at $35.85 billion.
The company is also selling a significant portion of its Apple shares.
With post wire
