Berkshire Hathaway, led by Warren Buffett, has disclosed further reductions in its stake in Bank of America, as per a late Monday filing, resulting in profits of over $10 billion since initiating the share sales in July.
Warren Buffett commenced investing in the second largest U.S. lender back in 2011 when concerns about the bank’s capitalization lingered post the financial crisis. By July, Berkshire held a 13.1% stake valued at around $45 billion. The recent round of divestments has brought down the stake to 10.1%.
Buffett’s ongoing sell-off has stirred unease among other Bank of America shareholders, particularly amidst uncertain prospects for the banking sector amid apprehensions of a potential U.S. economic downturn.
Following Berkshire’s initial sales in July, Bank of America’s shares have experienced a decrease of around 9%, while JPMorgan Chase, the largest U.S. bank, has seen a modest rise of 0.5%.
Despite the substantial divestment, Warren Buffett has not publicly disclosed the rationale behind scaling back the stake in Bank of America.
