On Friday, July 19, billionaire Warren Buffett’s Berkshire Hathaway company sold approximately 34 million shares of Bank of America stock for nearly $1.5 billion. According to Bloomberg data, Berkshire remains one of the largest shareholders of Bank of America, holding over 998 million shares valued at over $42 billion even after the sale. The stock price of Bank of America has risen by 7.9% so far this month.
Back in 2011, Buffett invested $5 billion in Bank of America in exchange for preferred stock and the right to purchase common stock. At that time, following the financial crisis, there was a lack of confidence in the banking sector. Buffett’s cash injection alleviated concerns about whether Bank of America had sufficient capital, leading to a surge in the stock price and generating significant unrealized profits for Berkshire Hathaway.
Based on Berkshire’s disclosed stock holdings, around 79% of the fair value of the investment portfolio is concentrated in five companies: Apple, Bank of America, American Express, Coca-Cola, and Chevron.
A recent significant move by Berkshire that has caught the market’s attention was the disclosure in May 2024 of the purchase of nearly 26 million shares of insurance company Chubb, with a stock value of around $6.7 billion, making it one of its top nine major holdings. Prior to this, the company had kept this mysterious stock hidden in regulatory filings for three consecutive quarters.