Billionaire investor Warren Buffett has profited by selling more than $3 billion worth of Bank of America stock in the past few weeks after shares of the second-largest US bank surged.
According to a regulatory filing late on Monday night, the 93-year-old Buffett, known as the “Oracle of Omaha,” liquidated 18.4 million shares of the bank’s stock between July 25 and 29 for $767 million.
In total, his investment conglomerate, Berkshire Hathaway, has sold 71.2 million shares of Bank of America for $3.05 billion since July 17, but still holds a 12.5% stake in the Charlotte, North Carolina-based bank.
Berkshire Hathaway remains the bank’s largest shareholder, with about 962 million shares valued at just over $39.5 billion.
The Washington Post has reached out to Berkshire Hathaway for comment.
A Bank of America spokesman declined to comment.
Bank of America shares have risen 22% this year.
The stock has traded below book value for much of the past decade but is currently trading at 1.2 times book value.
Buffett first decided to invest in Bank of America in 2011, initially putting $5 billion into the bank for preferred stock and the right to acquire 700 million shares.
His involvement came at a time when Bank of America was struggling in the aftermath of the 2008 financial crisis.
This eased investor concerns, boosted stock prices and generated millions of dollars in book profits.
Berkshire Hathaway ultimately acquired a stake of more than 10%, subject to regulatory approval.
Last April, Buffett praised Bank of America CEO Brian Moynihan and suggested he had no plans to retreat.
“I brought myself in years ago and they offered us a very good deal. I really like Brian Moynihan and I don’t want to sell it,” he said.
Berkshire has also been selling Apple shares, selling about 115 million shares in the first quarter.
The company may disclose more details about Apple’s revenue when it reports second-quarter earnings on Saturday.
Buffett said at Berkshire’s May 4 annual meeting that he expects the iPhone maker to continue to exist. Berkshire’s Largest Stock InvestmentsBut with the 21% federal tax rate on profits likely to rise, a sale makes sense.
In its first quarterly report of the year, Berkshire said 75% of its investments are spread across just five companies, including Bank of America.
Other companies listed in the report include American Express ($34.5 billion), Apple ($135.4 billion), Coca-Cola ($24.5 billion) and Chevron ($19.4 billion).
Berkshire also has investments in other banks, including Wells Fargo and JPMorgan Chase.
