Berkshire Hathaway has continuously decreased its holdings in Bank of America, selling 21.6 million shares worth approximately $862 million in recent transactions.
This move has reduced Berkshire’s shareholding in the banking company to 10.5%, as revealed in a Form 4 filing submitted to the Securities and Exchange Commission on Tuesday. The shares were sold at an average price of about $40 per share over three consecutive days – Friday, Monday, and Tuesday.
Currently, Berkshire owns 814.3 million shares of Bank of America, valued at $32 billion. Bank of America’s stock price experienced a 1% decline on Tuesday, trading at $39.45, and has decreased by around 10% since Berkshire initiated its significant divestment in mid-July. Berkshire has been steadily selling shares over the past six trading sessions, reducing its stake by more than 20% or approximately 220 million shares since the sell-off began two months ago.
As Berkshire holds over 10% of Bank of America’s stock, it still is required to report any changes in its stake to the SEC within two business days. The company is nearing the threshold where it will no longer be obligated to report changes within that timeframe, needing to decrease its holding to under about 776 million shares to avoid this requirement.
It is evident that Berkshire’s CEO, Warren Buffett, is determined to reduce the stake below 10%, and potentially even further.
Reports suggest that Berkshire may pause selling at 700 million shares, which was its initial acquisition stake in Bank of America back in 2017.
