Berkshire Hathaway, led by Warren Buffett, sells Bank of America for ninth consecutive day

At Extreme Investor Network, we are always on the lookout for the latest trends and insights in the world of finance. Recently, Warren Buffett’s Berkshire Hathaway has been making headlines with its selling streak in its big Bank of America stake. This move has raised eyebrows and sparked speculation among investors.

Over the past nine trading sessions, Berkshire has sold a total of 71.2 million shares of Bank of America, amounting to over $3 billion in sales. This has significantly reduced Berkshire’s stake in the bank, although it still remains the largest shareholder with a 12.3% stake. The recent selling spree has brought Berkshire’s ownership down to 961.6 million shares, with a market value of $39.5 billion.

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Warren Buffett’s initial investment in Bank of America dates back to 2011 when he purchased $5 billion worth of the bank’s preferred stock and warrants. This move helped bolster confidence in the struggling lender during the aftermath of the financial crisis. Buffett converted those warrants in 2017, solidifying Berkshire’s position as the largest shareholder in Bank of America.

Despite Buffett’s long-term stance on the investment, the recent selling activity suggests a shift in strategy. With Bank of America’s stock price performing well and the bank outperforming the S&P 500, Berkshire could be taking profits from its position. The bank’s stock has rallied 22% in 2024, showcasing its strong performance.

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As we await Berkshire’s second-quarter earnings report, due to be released soon, investors will be keen to see how the conglomerate’s biggest holdings, including Bank of America, have fared. The report will provide valuable insights into Berkshire’s investment strategy and decisions going forward.

Stay tuned to Extreme Investor Network for more updates and expert analysis on the latest developments in the financial world. Our team of seasoned professionals is dedicated to providing you with valuable insights and actionable information to help you navigate the ever-changing landscape of investing.

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