During a 12-Day Selling Spree, Buffett's Berkshire Sells $3.8 Billion Worth of Bank of America Stock

Berkshire Hathaway has significantly reduced its holdings in Bank of America, selling a total of 19.2 million shares over three days—Tuesday, Wednesday, and Thursday—for nearly $779 million at an average price of $40.52 per share, according to a recent regulatory filing.

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This sale extends Berkshire's divestment streak to 12 consecutive days, with total sales now surpassing $3.8 billion. The conglomerate still holds 942.4 million shares of Bank of America, valued at $37.2 billion based on Thursday’s closing price of $39.50 per share.

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As of Thursday’s close, Bank of America dropped to the third position among Berkshire's top holdings, now behind Apple and American Express, which is currently valued at $37.7 billion. Previously, Bank of America was Berkshire’s second-largest holding before the recent sell-off.

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Despite the sales, Berkshire remains the largest shareholder of Bank of America, retaining a 12.1% stake in the bank.

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The stock price of Bank of America has fallen by 5.2% this week, reaching a low of $38.98 during Thursday’s trading session, as concerns about a potential recession weigh on the financial sector. However, on a year-to-date basis, Bank of America has gained over 17%, outperforming the S&P 500.

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Warren Buffett initially invested $5 billion in Bank of America's preferred stock and warrants in 2011, in the wake of the financial crisis, to bolster confidence in the struggling lender facing losses from subprime mortgages. He converted those warrants in 2017, making Berkshire the largest shareholder in the bank and expressing that it would be a “long, long time” before he would consider selling.

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At that time, Buffett praised the business, valuation, and management of the Charlotte-based bank, led by Brian Moynihan since 2010.

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Recently, Bank of America reported impressive second-quarter results, highlighting increased investment banking and asset management fees, along with a positive outlook on net interest income.

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