Warren Buffett Moves: Berkshire Hathaway Reduces Bank Of America Holdings By $863M

Warren Buffett’s Berkshire Hathaway Inc BRK BRK sold an additional $863 million of Bank of America Corp BAC stock, reducing its stake closer to a 10% regulatory threshold, according to the company’s regulatory filing with U.S. Securities and Exchange Commission.

What Happened: Berkshire now owns close to 10% of the second-largest U.S. bank after the latest disposals over three trading days through Tuesday.

Buffett, 94, began trimming the massive investment in mid-July. Despite months of sales, Berkshire's remaining stake in Bank of America is valued at $32.1 billion, based on Tuesday's closing price, maintaining its position as the largest shareholder.

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Why It Matters: Bank of America CEO Brian Moynihan recently commented on Buffett’s sales, stating he has not inquired about the reasons behind the reduction. Moynihan praised Buffett’s investment history with the bank but admitted, “I don't know what exactly he is doing because frankly we can't ask.” This statement was made during an investor conference in New York.

Meanwhile, Bank of America is actively expanding its retail banking presence. The bank announced plans to open over 165 new financial centers across 63 U.S. markets by the end of 2026. This expansion includes nearly 40 centers set to open this year alone, with the first center in Louisville, Kentucky, opening recently.

Additionally, Ajit Jain, a top executive at Berkshire Hathaway, sold more than half of his shares in the Buffett-led company for approximately $139 million amid speculation on stock valuation and potential tax policies.

Price Action: Bank of America stock closed at $39.45 on Tuesday, down 1.05% for the day. In after-hours trading, the stock dropped 0.051%. Year to date, the stock has gained 16.37%, accroding to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.