Warren Buffett walks through the chambers ahead of Berkshire Hathaway’s annual shareholder meeting on May 3, 2024 in Omaha, Nebraska.
David A. Glogen | CNBC
Berkshire Hathaway’s sale of its large stake in Bank of America Inc. has extended its run for a ninth day in a row, suggesting that Warren Buffett isn’t just reducing his long-term holdings.
The Omaha-based conglomerate sold 18.4 million shares of the bank at an average price of $41.65 between Thursday and Monday for $767 million. Regulatory filings The company announced the deal late Monday. Over the past nine transactions, Berkshire has reduced its holdings by 71.2 million shares, raising sales of just over $3 billion.
Even after the selling spree, Berkshire still owns 961.6 million shares of Bank of America, giving it a market capitalization of $39.5 billion. Bank of America is Berkshire’s second-largest holding after Apple, but if the conglomerate keeps selling those shares, the bank’s market capitalization, now at $37.6 billion, could fall behind third-placed American Express.
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Bank of America
Berkshire remains Bank of America’s largest shareholder, with a 12.3% stake. Berkshire, which owns more than 10% of the stock, has two business days to report transactions, so it won’t be clear until Thursday whether the selling that began on Tuesday will continue.
Buffett famously bought $5 billion in preferred stock and warrants in Bank of America in 2011 in the aftermath of the financial crisis, to help restore confidence in the bank as it struggled with losses related to subprime mortgages. He converted those warrants in 2017, making Berkshire the largest shareholder in Bank of America. “A very long time” Before he sold.
Berkshire’s cost of BofA, disclosed at the end of 2021, was about $14.15 a share, or $14.6 billion. The value of its holding at the end of March was $39.2 billion. BofA closed at $41.09 on Monday.
The conglomerate may be taking profits on the back of strong results from Bank of America, which is set to have a big year: Bank stocks have risen 22% in 2024, beating the S&P 500’s 14.5% return.
Berkshire is scheduled to report its second-quarter results on Saturday morning, which are also expected to reveal more information about the conglomerate’s largest holdings.
