Berkshire Hathaway's Warren Buffett Trims Stake in Bank of America Following Stock Rally in 2024

Bank of America Corp. saw its stock drop in premarket trading on Monday, following an announcement by its largest shareholder, Berkshire Hathaway Inc., that it had sold a portion of its shares in the bank.

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According to a filing late Friday, Berkshire Hathaway sold approximately 38.89 million shares of Bank of America at prices ranging from $43.13 to $44.07 per share, generating proceeds of about $1.48 billion.

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Despite this sale, Bank of America’s stock has performed well this year, rising 27.4%, which is significantly higher than the 15.4% gain by the S&P 500. However, the stock was down 1.3% in premarket trading on Monday.

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Earlier in the year, Berkshire Hathaway, led by billionaire Warren Buffett, acquired 22.8 million shares of Bank of America during the first quarter of 2023. At that time, the stock was trading between $29 and $37 per share. By the previous week, the stock had risen above $43 per share, buoyed by the bank’s stronger-than-expected second-quarter profit.

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Following the recent sale, Berkshire Hathaway still holds 998.96 million shares in Bank of America, valued at approximately $42.86 billion based on Friday’s closing price of $42.90 per share. Bank of America’s total market capitalization is about $335.49 billion.

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Buffett’s initial investment in Bank of America dates back to 2011 when the stock was trading below $15 per share. This investment came at a time when bank stocks were under significant pressure due to the U.S. government’s debt-ceiling crisis.

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Berkshire Hathaway is set to report its second-quarter results on August 3.

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