Buffett’s Berkshire Hathaway sells BAC shares

Warren Buffett’s firm, Berkshire Hathaway, reduced its stake in Bank of America Corp on September 27, 2024. The transaction saw the sale of 11,678,366 shares at $39.45 each. This decreased the firm’s holding in the bank to 802,668,860 shares.

'Berkshire has sold nearly $9.5 billion of Bank of America stock—roughly 230 million shares—since it began unloading it in mid-July. Berkshire has reduced its stake by more than 20%.' https://t.co/KGivX8YIDW

— Jesse Felder (@jessefelder) September 29, 2024

The move adjusted the portfolio’s position size to 11.33%.

How Warren Buffett decides when to sell a stock, and why he might be dumping Bank of America https://t.co/aWnCQ5Kudu

— David Kass (@DrDavidKass) September 30, 2024

Warren Buffett, chairman of Berkshire Hathaway, is known as “The Oracle of Omaha.” He is a hallmark of investment success. He transformed a textile company into a major conglomerate primarily focusing on insurance and diverse investments.

Berkshire Hathaway now owns 100% of Berkshire Hathaway Energy.

Yesterday, BHE agreed to repurchase the 8% ownership interest held by the Walter Scott estate for $2.37 billion in cash, a $600 million promissory note, and $1.1 billion of $BRK.B.

(h/t @andrewcoye)

— Kevin Carpenter (@kejca) October 1, 2024

His investment philosophy emphasizes understanding a business deeply, investing with a margin of safety, and choosing companies with long-term value. Buffett’s strategies have consistently outperformed the market. Bank of America is one of the leading financial institutions in the United States. It boasts over $3.0 trillion in assets. The company operates across several segments, including consumer banking, global wealth and investment management, and global markets.

Buffett trims Bank of America stake

As of the latest data, Bank of America holds a market capitalization of approximately $305.73 billion with a P/E ratio of 13.87. The reduction in Bank of America shares by Buffett’s firm has adjusted its portfolio’s exposure to the financial services sector. The reduction of approximately 1.43% in BAC shares suggests a strategic realignment or cashing in on potential gains, as the stock has seen a year-to-date increase of 16.22%. This move might reflect Buffett’s assessment of the stock reaching its intrinsic value. Other notable investors like Dodge & Cox also hold significant positions in Bank of America. Buffett’s recent sell-off might influence other investors’ perceptions and strategies towards BAC, given his pronounced influence in the investment community. The financial services sector is currently experiencing various macroeconomic pressures, including interest rate changes and regulatory adjustments, which could affect Bank of America’s performance. However, the bank’s strong market position and recent financial metrics suggest resilience. Investors will be keenly watching the next moves of Buffett and other major investors. Buffett’s recent transaction in Bank of America shares marks a notable realignment in his investment strategy. It reflects his ongoing assessment of the financial landscape and intrinsic stock values. This move provides critical insight into his long-term investment approach, potentially signaling to the market both caution and opportunity.