Buffett's Berkshire Hathaway Unloads More BofA Stock

Berkshire Hathaway has been steadily reducing its stake in Bank of America, a move that has some investors scratching their heads. Berkshire Hathaway sold 19.2 million shares of Bank of America stock in the first quarter of 2023.

This is not the first time Berkshire Hathaway has unloaded BofA stock, having sold 9.8 million shares in the fourth quarter of 2022. The sale of 19.2 million shares is a significant decrease in Berkshire Hathaway's stake in Bank of America.

Warren Buffett, Berkshire Hathaway's CEO, has been vocal about his confidence in Bank of America's future prospects. However, the company's stock price has been underperforming, leading some to question Buffett's investment strategy.

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Warren Buffett's Berkshire Hathaway has been selling off its massive stake in Bank of America, unloading $3 billion in stock this month alone.

Buffett initially invested $5 billion in Bank of America in 2011, purchasing preferred stock and warrants. He converted the stake into common shares six years later.

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The stock price has multiplied in value, with a 21% gain this year, compared to a 20% gain in the KBW Bank Index.

Berkshire Hathaway's ownership in Bank of America could soon slide below the 10% regulatory threshold, requiring it to disclose transactions within a few days.

Buffett has offered no public explanation for his decision to pull back from the investment.

Despite the sales, Berkshire Hathaway still holds almost 962 million shares, worth $39.5 billion at Monday's closing price.

Here's a summary of the sales:

The sales mark Buffett's biggest pullback from a bet that has long served as a prominent vote of confidence in the stewardship of Bank of America CEO Brian Moynihan.

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