According to the latest documents submitted on Friday, legendary American investor Warren Buffett has sold nearly $850 million in Bank of America stocks.
Warren Buffett’s Berkshire Hathaway Inc. has been consistently selling Bank of America stocks since mid-July, adding $6.2 billion in funds to the company.
On Friday, Berkshire disclosed in the documents submitted to the US Securities and Exchange Commission the latest sales of Bank of America stocks, detailing the sale activities on August 28, 29, and 30. The documents showed that Berkshire sold a total of 21.1 million shares of Bank of America stocks in those three days, generating $848.2 million, with an average price per share of about $40.24.
This means that Berkshire has been selling Bank of America stocks for six consecutive trading days in the past week. The company sold Bank of America stocks worth $982 million on August 23, 26, and 27.
According to CNBC, since the reduction began on July 17, Berkshire Hathaway has reduced its stake in the bank on 21 of the past 33 trading days by selling 150.1 million shares, resulting in a total reduction of 14.5% of Bank of America shares, valued at $6.2 billion, averaging $41.33 per share.
Despite the continuous selling, Berkshire Hathaway remains the largest shareholder of Bank of America, holding 882.7 million shares, accounting for 11.4% of the bank’s shares, valued at nearly $36 billion.
Buffett and his company have not yet explained the reasons for these recent waves of sales.
The investment giant purchased Bank of America stocks in 2011 at a trading price of nearly $5 per share. Prior to this selling spree, Bank of America’s stock had risen by 31% this year.
Bank of America is the second-largest bank in the United States. As the Federal Reserve’s interest rate cuts draw closer, investors are concerned about the profitability of the banking industry. Against this backdrop, Bank of America’s stock has fallen by about 2% in the past 30 days.