Billionaire Warren Buffett continues to reduce his stake in American banks, with his company Berkshire Hathaway selling $2.287 billion worth of stock in the country’s second-largest bank.
According to Reuters, Berkshire Hathaway disclosed on Tuesday that between September 6th and September 10th, they sold approximately 5.8 million shares of Bank of America stock.
Based on data from the London Stock Exchange Group (LSEG), Berkshire Hathaway has sold around 174.7 million shares of Bank of America since mid-July, totaling $7.19 billion in cash.
Berkshire Hathaway remains the largest shareholder of Bank of America, required to report selling activities until their ownership drops below 10%. The company currently holds an 11.1% stake.
At the age of 94, Warren Buffett is one of the most respected investors in the world. Since 2011, he has been investing in Bank of America when Berkshire Hathaway bought $5 billion in preferred stock.
Over a year ago, before selling these shares, Buffett had praised Bank of America and its CEO Brian Moynihan.
Moynihan mentioned on Tuesday that Buffett has been a significant investor in the bank, but he did not inquire about the recent stock sales from the legendary investor.
Speaking at a financial conference in New York on that day, Moynihan told investors, “I don’t know what he’s doing because frankly, we don’t ask.”
An analyst from Deutsche Bank had suggested last week that Berkshire Hathaway’s goal might be to keep the ownership slightly below the 10% reporting threshold to avoid regulatory scrutiny.
Bank of America’s stock price fell by 0.8% in pre-market trading on Wednesday. Since Berkshire Hathaway began selling in large quantities, the bank’s stock has consistently underperformed the market.