Billionaire investor Warren Buffett’s conglomerate, Berkshire Hathaway, has trimmed its investment in Bank of America to under 10% as part of a recent selling spree that commenced in mid-July this year.
According to a filing submitted to the U.S. Securities and Exchange Commission on Thursday evening, more than 9.5 million shares were offloaded by Buffett in three separate transactions carried out from Tuesday through Thursday. This development has consequently reduced Berkshire’s holdings to 775 million shares, representing a stake of approximately 9.987%.
As Berkshire’s ownership now falls below the critical 10% threshold, the company is no longer obligated to promptly disclose its related transactions. The SEC mandates that shareholders holding over 10% of a firm’s equity securities must report any equity-related dealings within two business days.
Notably, Buffett made headlines in 2011 when he purchased $5 billion worth of Bank of America preferred stock and warrants to bolster confidence in the struggling financial institution following the subprime mortgage crisis. By converting the warrants into common stock in 2017, Berkshire emerged as the leading shareholder in the bank. Subsequently, Buffett expanded his position by acquiring an additional 300 million shares in 2018 and 2019.
Despite the recent divestment of Bank of America shares by Berkshire Hathaway, CEO Warren Buffett has yet to publicly disclose the rationale behind this strategic move.
