The Oracle of Omaha Warren Buffett has recently sold an additional $982 million worth of Bank of America stock as part of Berkshire Hathaway’s ongoing reduction of its investment in the second-largest US bank.
Since mid-July of this year, Berkshire Hathaway has decreased its stake by nearly 13%, resulting in total proceeds of $5.4 billion. The latest sales were disclosed in a regulatory filing made by Berkshire Hathaway on August 27, revealing transactions that took place on August 23, 26, and 27.
Buffett, known for his strategic investment decisions, has been quiet about the rationale behind reducing this highly profitable investment, which originated when the stock was priced around $5 in 2011. Despite a 31% increase in the stock price earlier this year, following the recent series of sell-offs, the shares have dipped by 10% to $39.67.
This move signifies Buffett’s significant retreat from an investment that has long showcased his confidence in Bank of America’s CEO, Brian Moynihan, whom the renowned investor has publicly lauded on multiple occasions.
Even with the recent sales, Berkshire Hathaway still holds the largest position in Bank of America, owning 903.8 million shares valued at $35.9 billion based on the closing price on Tuesday.
