Strategic Selloff: Warren Buffett's Berkshire Hathaway recently sold 33.9 million shares of Bank of America (BAC) over a three-day period, trimming its stake by approximately $1.5 billion. The per-share sale prices ranged from $43.13 to $44.07.
Remaining Holdings: Despite the significant reduction, Berkshire Hathaway retains a substantial position in BAC, holding nearly 1 billion shares valued at over $42 billion. This equates to an almost 13% ownership stake, making Bank of America Berkshire’s second-largest holding after Apple.
Market Reaction: The sale triggered a drop in BAC’s stock price, with shares falling about 1% during intraday trading on Monday. However, the stock remains up more than 25% year-to-date, even after hitting a two-year high the previous week. Berkshire Hathaway’s own shares also saw fluctuations but have largely remained stable.
Portfolio Strategy: This move underscores Berkshire Hathaway’s active portfolio management, balancing its exposure while continuing to hold a dominant position in one of its key investments.
Remaining Holdings: Despite the significant reduction, Berkshire Hathaway retains a substantial position in BAC, holding nearly 1 billion shares valued at over $42 billion. This equates to an almost 13% ownership stake, making Bank of America Berkshire’s second-largest holding after Apple.
Market Reaction: The sale triggered a drop in BAC’s stock price, with shares falling about 1% during intraday trading on Monday. However, the stock remains up more than 25% year-to-date, even after hitting a two-year high the previous week. Berkshire Hathaway’s own shares also saw fluctuations but have largely remained stable.
Portfolio Strategy: This move underscores Berkshire Hathaway’s active portfolio management, balancing its exposure while continuing to hold a dominant position in one of its key investments.