Berkshire Hathaway, led by Warren Buffett, has significantly reduced its stake in Bank of America (BAC), offloading shares worth nearly $10 billion since mid-July. This strategic move is part of Buffett’s ongoing effort to simplify his company’s vast portfolio.
Key Bank of America Sale Details
In a regulatory filing released this week, Berkshire Hathaway disclosed that it sold 8.55 million Bank of America shares, valued at approximately $337.9 million. Since mid-July, the company has sold around 238.7 million shares, which accounts for roughly 23% of its holdings in the bank.
Despite the sale, Berkshire still retains a 10.2% stake in Bank of America, making it one of the largest shareholders of the second-largest bank in the U.S. It’s important to note that Berkshire must continue reporting stock sales until its ownership stake dips below 10%, in compliance with U.S. Securities and Exchange Commission rules. After that, further stock movements will be revealed only in quarterly reports.
Reducing Major Holdings
Berkshire’s decision to downsize its Bank of America stake follows a similar move earlier this year when the conglomerate reduced its largest holding, Apple (AAPL), by more than half. These moves suggest that Buffett, now 94 years old, is refining his company’s portfolio to focus on more manageable and profitable investments.
Other Recent Developments
Alongside these sales, Berkshire also completed the acquisition of the 8% stake it did not already own in Berkshire Hathaway Energy. This purchase, valued at $2.37 billion, brings the energy and utility division fully under its control. The deal wraps up another loose end for Buffett, who continues to streamline Berkshire’s operations.
Looking Forward
Buffett’s company ended June 2024 with $276.9 billion in cash, providing ample resources for further investments and acquisitions. With its diverse businesses ranging from BNSF railroad to Dairy Queen and Geico, Berkshire remains a dominant force in various sectors, while recent portfolio adjustments reflect its evolving investment strategy.